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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 create virtual tokens as easy to invest in as stocks and equally as liquid,” the Taipei Times reported on Oct. 23.
In 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 to be fake, the book described, including that 80 whitepapers were shown to be incorrect as of April. Findings were also quoted by the legislator from Satis Group.
The news outlet conveyed the answer of Koo:
The commission would govern ICOs… [but] tokens exchanged for products, like those used in accruing points at convenience stores or mileage points approved by airlines, would not be addressed by the standards.
In May, the National Committee of Experts on the Internet Financial Security Technology, a Chinese industry organization of China, said it found 421 fake cryptocurrencies. 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’ tradingHow does Ethereum Sweepstakes bonus governor of Taiwan’s central bank, Yang Chin-long, told the finance committee that”the government tends to regard cryptocurrencies as virtual commodities or assets rather than currencies, because they have no 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 like 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, adding:
The issuer would need to disclose information like what companies which are publicly traded need to do.
Regarding the time frame of the ICO criteria,”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’re not used as securities.”
“The more we regulate, the more this new economic behavior wanes,” Koo was quoted saying. In June, the FSC indicated that it intended to maintain a limited oversight of cryptocurrencies and concentrate on anti-money laundering measures. In April, news.Bitcoin.com reported that Taiwanese bitcoin regulations are expected by November.
What do you think of Taiwan regulating ICOs? Let us know in the comments section below.
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