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 create virtual tokens as easy to invest in as shares and just as liquid,» the Taipei Times reported on Oct. 23.
In a finance committee meeting, Chinese Nationalist Party (KMT) legislator William Tseng asked Koo whether the government would regulate ICOs. Tseng pointed out that 127 ICO whitepapers were discovered to be fake, the publication described, adding that 80 whitepapers were found to be inaccurate as of April. Findings were quoted by the legislator from Satis Group.
The news outlet conveyed Koo’s reply:
The commission would govern ICOs… [but] tokens exchanged for products, like those used in accruing points at convenience stores or mileage points accepted by airlines, would not be covered by the standards.
In May, a Chinese government-backed business organization, China’s National Committee of Experts on the Internet Financial Security Technology, said it found 421 cryptocurrencies. Independently, the Wall Street Journal analyzed 1,450 ICOs and»found 271 with red flags which include plagiarized investor records, guarantees of guaranteed returns and missing or fake executive teams and bitcoin casino best bonus.»
The Securities and Futures Bureau of taiwan Deputy Director-General Tsai Li-ling was quoted by the Taipei Times asserting:
People often confuse the trading of cryptocurrencies and an ICO1xbitscam governor of Taiwan’s central bank, Yang Chin-long, told the finance committee that»the government will regard cryptocurrencies as virtual commodities or assets rather than currencies, because they don’t have any 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 similar to 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 must disclose information similar to what companies that are publicly traded need to do.
Regarding the time frame of the ICO standards,»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 are not utilized as securities.»
«The more we govern, the more this new economic behavior 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 supervision of cryptocurrencies. In April, news.Bitcoin.com reported that Taiwanese bitcoin regulations are expected by November.
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