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 easy to invest in as shares and equally as liquid,” the Taipei Times reported on Oct. 23.
At a finance committee meeting, Chinese Nationalist Party (KMT) legislator William Tseng requested Koo if the government would govern ICOs. Tseng pointed out that 127 ICO whitepapers globally were found last year to be fake, the book explained, including that 80 whitepapers were shown to be incorrect as April. Findings were quoted by the legislator from Satis Group.
The information outlet conveyed the reply of Koo:
The commission would regulate ICOs… [but] tokens exchanged for products, such as those used in accruing points at convenience stores or mileage points accepted by airlines, would not be addressed by the standards.
In May, the National Committee of Experts on the Internet Financial Security Technology, a Chinese business organization of China, said it found 421 cryptocurrencies. 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 missing or fake executive teams and bitcoin casino best bonus.”
Taiwan’s Securities and Futures Bureau Deputy Director-General Tsai Li-ling was quoted by the Taipei Times asserting:
People frequently confuse cryptocurrencies’ trading and an ICOTrusted 7bitcasino review 7bitcasino best casino bitcoin bonus 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 a 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 which are traded need to do.
Regarding the time frame of the ICO standards,”The draft is to be completed by June next year,” the information outlet detailed, noting that”The commission has no intention of curbing the creativity and productivity related to cryptocurrencies if they are not utilized as securities.”
“The more we govern, the more this new economic behaviour wanes,” Koo was quoted saying. In June, the FSC indicated that focus on anti-money laundering measures and it intended to maintain only a limited supervision of cryptocurrencies. In April, news.Bitcoin.com reported that Taiwanese bitcoin regulations are expected by November.
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