Taiwan to Regulate ICOs
FSC Chairman Wellington Koo.
The chairman of Taiwan’s Financial Supervisory Commission (FSC), Wellington Koo, has reportedly confirmed that the commission is drafting national standards for initial coin offerings (ICOs). The FSC aims”to make virtual tokens as simple to invest in as shares and just as liquid,” the Taipei Times reported on Oct. 23.
At a finance committee meeting, Chinese Nationalist Party (KMT) legislator William Tseng asked Koo whether the government would regulate ICOs. Tseng pointed out that 127 ICO whitepapers were discovered last year to be fake, the publication explained, including that 80 whitepapers were found to be inaccurate as April. Findings were also quoted by the legislator from Satis Group.
The news outlet conveyed Koo’s answer:
The commission would govern ICOs… [but] tokens exchanged for products, like those used in accruing points at convenience stores or mileage points accepted by airlines, would not be covered by the standards.
In May, a Chinese industry organization, China’s National Committee of Experts on the Internet Financial Security Technology, said it found 421 cryptocurrencies that was fake. Independently, the Wall Street Journal analyzed 1,450 ICOs and”found 271 with red flags that include plagiarized investor records, guarantees of guaranteed returns and fake or missing executive teams and bitcoin casino best bonus.”
The Securities and Futures Bureau of taiwan Deputy Director-General Tsai Li-ling was quoted by the Taipei Times asserting:
An ICO often confuses with the trading of cryptocurrenciesFortune Jack casino governor of Taiwan’s central bank, Yang Chin-long, told the finance committee that”the government will regard cryptocurrencies as virtual commodities or assets as opposed to currencies, because they have no intrinsic value.” Tsai elaborated that”cryptocurrency trading is similar to trading in gold, for which the commission only implements money laundering controls.”
If a token functions similar to some security,”the commission would define it as a’securities token’ and subject it to the Securities and Exchange Act,” the book quoted Tsai describing, including:
The issuer would must disclose information similar to what companies that are publicly traded need to do now.
Regarding the time frame of the ICO standards,”The draft is to be completed by June next year,” the news outlet detailed, noting that”The commission has no intention of curbing the creativity and productivity associated with cryptocurrencies if they’re not used as securities.”
“The more we govern, the more this new economic behavior wanes,” Koo was quoted saying. In June, the FSC indicated that it intended to maintain only a limited oversight of cryptocurrencies and focus on anti-money laundering measures. In April, news.Bitcoin.com reported that Taiwanese bitcoin regulations are expected by November.
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