diciembre 18, 2017 | Posted in:Blog
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 make 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 requested Koo whether the government would govern ICOs. Tseng pointed out that 127 ICO whitepapers were found to be fake, the publication described, including that 80 whitepapers were found to be incorrect as April. The legislator quoted findings from Satis Group showing that 81 percent of ICOs are identified as scams.
The news outlet conveyed the reply of Koo:
The commission would govern ICOs… [but] tokens exchanged for goods, like those used in accruing points at convenience stores or mileage points approved by airlines, would not be covered by the standards.
In May, the National Committee of Experts on the Internet Financial Security Technology, a Chinese government-backed business organization of China, said it found 421 fake cryptocurrencies. Independently, the Wall Street Journal analyzed 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.»
Taiwan’s Securities and Futures Bureau Deputy Director-General Tsai Li-ling was quoted by the Taipei Times asserting:
An ICO frequently confuses with the trading of cryptocurrenciesbitcasino review 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 don’t have any 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 book quoted Tsai describing, including:
The issuer would also must disclose information similar to what companies which are traded need to do now.
Regarding the time period 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 are not utilized as securities.»
«The more we regulate, the more this new financial behavior wanes,» Koo was quoted saying. In June, the FSC indicated that it intended to maintain only 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.
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