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 shares and equally as liquid,” the Taipei Times reported on Oct. 23.
In a finance committee meeting, Chinese Nationalist Party (KMT) legislator William Tseng asked Koo if the government would regulate ICOs. Tseng pointed out that 127 ICO whitepapers worldwide were discovered to be fake, the publication described, adding that 80 whitepapers were found to be incorrect as of April. Findings were quoted by the legislator from Satis Group showing that 81 percent of ICOs have been identified as scams.
The information outlet conveyed Koo’s answer:
The commission would regulate ICOs… [but] tokens exchanged for goods, such as those used in accruing points at convenience stores or mileage points approved by airlines, wouldn’t be addressed by the standards.
In May, China’s National Committee of Experts on the Internet Financial Security Technology, a Chinese industry organization, said it found 421 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 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 with the trading of cryptocurrenciesbest bitcoin casino faucet ask gamblers us bitcoin casino low fees high cashout 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 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 publication quoted Tsai describing, adding:
The issuer would need to disclose information like what companies which are publicly traded need to do.
Regarding the time period 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 controlling the creativity and productivity related to cryptocurrencies if they are not utilized as securities.”
“The more we govern, the more this new financial behavior wanes,” Koo was quoted saying. In June, the FSC indicated that concentrate on anti-money laundering measures and it intended to maintain only a limited supervision of cryptocurrencies. In April, news.Bitcoin.com reported that Taiwanese bitcoin regulations are expected by November.
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