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.

In a finance committee meeting, Chinese Nationalist Party (KMT) legislator William Tseng requested Koo whether the government would regulate ICOs. Tseng pointed out that 127 ICO whitepapers were discovered last year to be fake, the publication explained, including that 80 whitepapers were found to be inaccurate as of April. Findings were also quoted by the legislator from Satis Group.

The information outlet conveyed Koo’s answer:

The commission would govern ICOs… [but] tokens exchanged for goods, like those used in accruing points at convenience stores or mileage points accepted by airlines, wouldn’t be addressed 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 cryptocurrencies that was fake. Independently, the Wall Street Journal analyzed 1,450 ICOs and »found 271 with red flags that include plagiarized investor documents, guarantees of guaranteed returns and fake or missing executive teams and bitcoin casino best bonus. »

Securities Tokens

Taiwan’s Securities and Futures Bureau Deputy Director-General Tsai Li-ling was quoted by the Taipei Times asserting:

An ICO frequently confuses using cryptocurrencies’ tradingfree spins casino bitcoin are bitcoin casino apps legal 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 don’t have any intrinsic value. »  Tsai elaborated that »cryptocurrency trading is like 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 also need to disclose information like what companies that are traded need to do today.

Regarding the time period 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 related to 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 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.

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Source: bitcoincasinoreview.net