The Taiwanese Financial Supervisory Commission is drafting a set of nationwide requirements for preliminary coin choices. The regulator reportedly goals to make tokens as straightforward to take a position and as liquid as shares. The fee emphasizes that it “has no intention of curbing the creativity and productivity associated with cryptocurrencies if they are not used as securities.”
Taiwan to Regulate ICOs
The chairman of Taiwan’s Financial Supervisory Commission (FSC) has reportedly confirmed that the fee is drafting nationwide requirements for preliminary coin choices (ICOs). The regulator goals “to make virtual tokens as easy to invest in as stocks and just as liquid,” the Taipei Times reported on Oct. 23.
At a finance committee assembly, Chinese Nationalist Party (KMT) legislator William Tseng requested whether or not the federal government would regulate ICOs. He identified that 127 ICO whitepapers worldwide have been discovered final yr to be pretend, the publication described. In addition, 80 whitepapers have been discovered to be inaccurate as of April. The legislator moreover quoted findings from Satis Group displaying that 81 % of ICOs have been identified as scams.
The information outlet conveyed Koo’s reply:
The fee would regulate ICOs … [but] tokens exchanged for items, similar to these utilized in accruing factors at comfort shops or mileage factors accepted by airways, wouldn’t be coated by the requirements.
In May, China’s National Committee of Experts on the Internet Financial Security Technology, a Chinese government-backed business group, stated it found 421 pretend cryptocurrencies. Independently, the Wall Street Journal analyzed 1,450 ICOs and “found 271 with red flags that include plagiarized investor documents, promises of guaranteed returns and missing or fake executive teams.”
Taiwan’s Securities and Futures Bureau Deputy Director-General Tsai Li-ling was quoted by the Taipei Times commenting:
People typically confuse an ICO with the buying and selling of cryptocurrencies.
The governor of Taiwan’s central financial institution, Yang Chin-long, advised the 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 features just like a safety, “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 additionally have to disclose info just like what corporations which might be publicly traded have to do now.
Regarding the time-frame of the ICO requirements, “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 associated with cryptocurrencies if they are not used as securities.”
“The more we regulate, the more this new economic behavior wanes,” Koo was quoted saying. In June, the FSC indicated that it meant to take care of solely a restricted oversight of cryptocurrencies and give attention to anti-money laundering measures. In April, information.Bitcoin.com reported that Taiwanese bitcoin laws are anticipated by November.
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