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 stocks 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 regulate ICOs. Tseng pointed out that 127 ICO whitepapers were found last year to be fake, the book explained, including that 80 whitepapers were found to be inaccurate as of April. Findings were quoted by the legislator from Satis Group.
The news outlet conveyed the answer 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 government-backed industry organization of China, said it found 421 fake cryptocurrencies. Independently, the Wall Street Journal analyzed 1,450 ICOs and»found 271 with red flags that include plagiarized investor records, promises of guaranteed returns and missing or fake 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’ tradinglow bet bitcoin casino usa bitcoin casino world cup governor of Taiwan’s central bank, Yang Chin-long, told the finance committee that»the government will regard cryptocurrencies as virtual assets or commodities rather than currencies, because they don’t have any intrinsic value.» Tsai elaborated that»cryptocurrency trading is similar to trading in gold, for which the commission just 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 publication quoted Tsai describing, including:
The issuer would also need to disclose information like what companies that are traded need to do now.
Regarding the time period of the ICO criteria,»The draft is to be completed by June next year,» the news outlet detailed, noting that»The commission has no intention of controlling the creativity and productivity associated with cryptocurrencies if they’re not utilized as securities.»
«The more we govern, the more this new financial behaviour wanes,» Koo was quoted saying. In June, the FSC indicated that it intended to maintain only a limited supervision 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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