PETALING JAYA: Cryptocurrency centric ride-hailing service operator DACSEE is planning its first initial coin offering (ICO) in Malaysia despite a much publicised failed attempt by another issuer, CopyCash Foundation early this year.

After having funding activities elsewhere, including Bangkok, DACSEE is now eyeing to have its footprint in the country and claims to be in talks with the regulators for the exercise.

“We are currently still in the midst of obtaining the regulations in Malaysia... once we have finalised it then we will proceed to embark on this coin offering here (Malaysia),” DACSEE co-founder and COO Lim Chiew Shan told SunBiz.

DACSEE is now available for users in Malaysia to download, it is expected to be available on iOS App store April 27.

Acknowledging cryptocurrency as a grey area in Malaysia, he said the company is working very closely with authorities such as the Land and Transport Commission (SPAD) and other government authorities to ensure that safety and requirements of passengers are met when they use the platform.

“DACSEE prior to this had engaged with SPAD and presented their business model and sought advice (in January). Pertaining to certain elements in their business model they have been advised to get certification from Bank Negara Malaysia and Ministry of Domestic Trade, Co-operatives and Consumerism (KPDNKK). Other than that, they haven’t come back to us,”a spokesman from SPAD told SunBiz.

The Securities Commission had recently announced that they were engaging with 12 ICO issuers, however it is understood that DACSEE is not one of them.

Lim highlighted that the company sees raising funds by way of an ICO as a better strategy compared with the traditional way of looking for investors, especially with the presence of well-funded e-hailing players such as Grab in the market.

To sum up, there will be three fundraising stages – namely angel contributor round, pre-ICO and ICO, after which DACSEE tokens will only be available at exchanges. A total of three billion DACSEE tokens were pre-mined on the Ethereum network on Oct 3, 2017.

According to its website with less than 30 days left for the ICO to end, the company has thus far raised about US$24.23 million (RM94.8 million). Worth noting is that it has seen participation from Malaysian investors, accounting for less than 5% of the total funds raised.

Conversation threads sighted by SunBiz in a closed telegram group used by the company for engagement with drivers and investors, revealed that the pre-ICO ended in February and the minimum amount of participation is US$3,000, while the ongoing ICO round is US$20. One DACSEE token is priced at US$0.062 (24sen).

The DACSEE platform enables drivers to build their own fleet with partner drivers, and users registering with DACSEE automatically become a rookie driver and passenger, which gives drivers and referees a 1-2% overriding commission in the form of DACSEE token, offering opportunities to earn passive income.

Lim explained that drivers pay commission in the form of a token, unlike other ride-hailing platforms which requires drivers to pay a deposit before accepting passengers.

“This makes a market demand, as all drivers on the platform will have to purchase the token through the integrated exchange using the application.”

A promotional literature on the company’s Facebook page read that DACSEE enables back-end cryptocurrency trading with aim of currency rewards and it does not make profit from drivers.

The SC and BNM had early this year cautioned ICO issuers that no person is permitted to carry out any regulated activities such as fundraising, fund management and dealing in capital market products without obtaining necessary approval or authorisation.