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 simple to invest in as shares and equally as liquid,” the Taipei Times reported on Oct. 23.

At a finance committee meeting, Chinese Nationalist Party (KMT) legislator William Tseng asked Koo whether the government would govern ICOs. Tseng pointed out that 127 ICO whitepapers were discovered last year to be fake, the book explained, adding that 80 whitepapers were shown to be inaccurate as of April. The legislator also quoted findings from Satis Group showing that 81 percent of ICOs are identified as scams.

The news outlet conveyed Koo’s reply:

The commission would regulate 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, China’s National Committee of Experts on the Internet Financial Security Technology, a Chinese government-backed business organization, said it found 421 cryptocurrencies that was fake. Independently, the Wall Street Journal analyzed 1,450 ICOs and”found 271 with red flags which include plagiarized investor records, promises 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 from the Taipei Times asserting:

People frequently confuse the trading of cryptocurrencies and an ICOthe best payout for bitcoin casino no deposit bonus bitcoin casino 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 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 book quoted Tsai describing, adding:

The issuer would also must disclose information similar to what companies that are traded need to do now.

Regarding the time frame 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 curbing the creativity and productivity related to cryptocurrencies if they’re 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 it intended to maintain only a limited oversight 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.info