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 make 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 if the government would govern ICOs. Tseng pointed out that 127 ICO whitepapers were found last year to be fake, the publication described, including that 80 whitepapers were shown to be incorrect as April. Findings were quoted by the legislator from Satis Group.
The news outlet conveyed the answer of Koo:
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, would not be addressed by the standards.
In May, a Chinese business organization, China’s National Committee of Experts on the Internet Financial Security Technology, said it found 421 cryptocurrencies. Independently, the Wall Street Journal examined 1,450 ICOs and”found 271 with red flags which include plagiarized investor documents, guarantees of guaranteed returns and fake or missing executive teams and bitcoin casino best bonus.”
Taiwan’s Securities and Futures Bureau Deputy Director-General Tsai Li-ling was quoted from the Taipei Times asserting:
An ICO frequently confuses using the trading of cryptocurrenciesbitcoinrush review 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 like trading in gold, for which the commission only implements money laundering controls.”
If a token functions like some 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 similar to what companies which are traded need to do.
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 regulate, 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 focus 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.
Images courtesy of Shutterstock and Wikipedia.
Have to calculate your bitcoin holdings? Check our tools department.