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 first coin offerings (ICOs). The FSC aims”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 meeting, Chinese Nationalist Party (KMT) legislator William Tseng asked Koo whether the government would regulate ICOs. Tseng pointed out that 127 ICO whitepapers worldwide were found to be fake, the book explained, adding that 80 whitepapers were shown to be inaccurate 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 regulate ICOs… [but] tokens exchanged for goods, such as those used in accruing points at convenience stores or mileage points accepted by airlines, wouldn’t be addressed 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 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.”
Securities Tokens
The Securities and Futures Bureau of taiwan Deputy Director-General Tsai Li-ling was quoted from the Taipei Times asserting:
People often confuse an ICO with the trading of cryptocurrenciesonline bitcoin casino software best site to buy bitcoin for ignition casino governor of Taiwan’s central bank, Yang Chin-long, told the finance committee that”the government tends to regard cryptocurrencies as virtual assets or commodities rather than currencies, because they don’t have any intrinsic value.” Tsai elaborated that”cryptocurrency trading is similar to trading in gold, for which the commission just implements money laundering controls.”
If a token functions like 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, including:
The issuer would also must disclose information like what companies that 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 controlling the creativity and productivity related to cryptocurrencies if they are not used 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 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.net
