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 initial coin offerings (ICOs). The FSC aims”to create virtual tokens as easy to invest in as shares 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 whether the government would govern ICOs. Tseng pointed out that 127 ICO whitepapers were found last year to be fake, the book explained, adding that 80 whitepapers were shown to be incorrect as of April. The legislator also quoted findings from Satis Group.
The information outlet conveyed the reply 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, wouldn’t be covered by the standards.
In May, China’s National Committee of Experts on the Internet Financial Security Technology, a Chinese government-backed industry organization, said it found 421 fake cryptocurrencies. Independently, the Wall Street Journal examined 1,450 ICOs and”found 271 with red flags that 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 by the Taipei Times asserting:
People often confuse cryptocurrencies’ trading and an ICOBitcoincasino.us review 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 like trading in gold, for which the commission only 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 that are traded need to do.
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 related to cryptocurrencies if they are not utilized as securities.”
“The more we regulate, the more this new financial 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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