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 stocks 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 if the government would regulate ICOs. Tseng pointed out that 127 ICO whitepapers were discovered to be fake, the publication explained, including that 80 whitepapers were found to be incorrect as April. Findings were also quoted by the legislator from Satis Group showing that 81 percent of ICOs have been identified as scams.

The news outlet conveyed the answer of Koo:

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, would not be covered by the standards.

In May, a Chinese government-backed industry 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 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 the trading of cryptocurrenciesonline casino bitcoin cashout best bitcoin casino investment 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 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 publication quoted Tsai describing, including:

The issuer would must disclose information similar to 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 curbing the creativity and productivity related to cryptocurrencies if they’re not utilized as securities.”

“The more we regulate, the more this new financial behaviour 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 oversight of cryptocurrencies. In April, news.Bitcoin.com reported that Taiwanese bitcoin regulations are expected by November.

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Source: bitcoincasinoreview.info