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 stocks and just as liquid, » the Taipei Times reported on Oct. 23.

At 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 globally were found last year to be fake, the publication described, adding that 80 whitepapers were found to be inaccurate as of April. The legislator quoted findings from Satis Group.

The information outlet conveyed Koo’s answer:

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, wouldn’t be covered by the standards.

In May, a Chinese government-backed business organization, China’s National Committee of Experts on the Internet Financial Security Technology, said it found 421 cryptocurrencies that was fake. Independently, the Wall Street Journal examined 1,450 ICOs and »found 271 with red flags which include plagiarized investor documents, promises of guaranteed returns and missing or fake executive teams and bitcoin casino best bonus. »

Securities Tokens

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

People often confuse an ICO with the trading of cryptocurrenciesbitcoin online casino bonuses bitcoin casino free spins usa governor of Taiwan’s central bank, Yang Chin-long, told the finance committee that »the government will 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 only implements money laundering controls. »

If a token functions similar to 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 also need to disclose information like what companies which are publicly traded need to do.

Regarding the time frame 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 associated with cryptocurrencies if they’re not used as securities. »

« The more we govern, the more this new economic behavior wanes, » Koo was quoted saying. In June, the FSC indicated that concentrate on anti-money laundering measures and it intended to maintain a limited supervision of cryptocurrencies. In April, news.Bitcoin.com reported that Taiwanese bitcoin regulations are expected by November.

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Source: bitcoincasinoreview.net