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 simple 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 asked Koo if the government would govern ICOs. Tseng pointed out that 127 ICO whitepapers worldwide were found to be fake, the publication described, adding that 80 whitepapers were shown to be inaccurate as April. The legislator also quoted findings from Satis Group showing that 81 percent of ICOs have been identified as scams.
The news outlet conveyed the answer of Koo:
The commission would govern ICOs… [but] tokens exchanged for products, such as those used in accruing points at convenience stores or mileage points accepted by airlines, wouldn’t be covered 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, 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 by the Taipei Times asserting:
People often confuse cryptocurrencies’ trading and an ICObitcoin casino no minimum deposit bitcoin online casino usa governor of Taiwan’s central bank, Yang Chin-long, told the finance committee that”the government tends to regard cryptocurrencies as virtual assets or commodities 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 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, 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 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 a limited supervision 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.
Pictures courtesy of Shutterstock and Wikipedia.
Have to compute your bitcoin holdings? Check our tools section.