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 stocks and just as liquid,” the Taipei Times reported on Oct. 23.
In a finance committee meeting, Chinese Nationalist Party (KMT) legislator William Tseng requested Koo whether the government would govern ICOs. Tseng pointed out that 127 ICO whitepapers were discovered to be fake, the publication explained, adding that 80 whitepapers were found to be incorrect as April. Findings were also quoted by the legislator from Satis Group showing that 81 percent of ICOs have been identified as scams.
The information outlet conveyed Koo’s reply:
The commission would govern ICOs… [but] tokens exchanged for goods, such as those used in accruing points at convenience stores or mileage points accepted by airlines, would not be covered by the standards.
In May, the National Committee of Experts on the Internet Financial Security Technology, a Chinese government-backed business organization of China, said it found 421 fake cryptocurrencies. Independently, the Wall Street Journal analyzed 1,450 ICOs and”found 271 with red flags which include plagiarized investor documents, 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 from the Taipei Times asserting:
People frequently confuse cryptocurrencies’ trading and an ICOlucky jack casino bitcoin bitcoin casino with craps 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 as opposed to currencies, because they don’t have any 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, adding:
The issuer would must disclose information like what companies which are publicly traded need to do today.
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 associated with cryptocurrencies if they are not used 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 a limited oversight of cryptocurrencies. In April, news.Bitcoin.com reported that Taiwanese bitcoin regulations are expected by November.
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