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 first 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.
In a finance committee meeting, Chinese Nationalist Party (KMT) legislator William Tseng asked Koo whether the government would govern ICOs. Tseng pointed out that 127 ICO whitepapers globally were discovered to be fake, the publication described, including that 80 whitepapers were shown to be inaccurate as April. Findings were also quoted by the legislator from Satis Group.
The information outlet conveyed Koo’s reply:
The commission would regulate ICOs… [but] tokens exchanged for products, like those used in accruing points at convenience stores or mileage points approved by airlines, wouldn’t be addressed 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 examined 1,450 ICOs and”found 271 with red flags which 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 from the Taipei Times asserting:
An ICO often confuses using cryptocurrencies’ tradingonline casino with bitcoin bitcoin casino with shisa statues governor of Taiwan’s central bank, Yang Chin-long, told the finance committee that”the government will regard cryptocurrencies as virtual assets or commodities as opposed to currencies, because they don’t have any intrinsic value.” Tsai elaborated that”cryptocurrency trading is like 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 publication quoted Tsai describing, including:
The issuer would need to disclose information like what companies that are traded need to do.
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 related to cryptocurrencies if they’re not utilized as securities.”
“The more we regulate, the more this new financial behavior wanes,” Koo was quoted saying. In June, the FSC indicated that focus on anti-money laundering measures and it intended to maintain a limited oversight of cryptocurrencies. In April, news.Bitcoin.com reported that Taiwanese bitcoin regulations are expected by November.
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