Taiwan Follows Bitcoin-Friendly Japan, Avoids China & Korea ICO Bans
In significant news today, Taiwan’s Financial Supervisory Commission chairman Wellington Koo has told a joint session of this parliament and the cabinet today that Taiwan won’t stick to the paths of China and South Korea in an outright ban on crypto-related action. Instead, the head of Taiwan’s financial regulator pledged to adopt a friendlier stance to encourage the adoption and development of both cryptocurrencies and blockchain technology in the nation.
According to The News Lens, Koo voiced the official stance following a request by legislator Jason Hsu, a congressman from Taiwan’s Nationalist party that has long adopted a deregulatory pro-FinTech stance.
In quotes reported by the publication, Hsu stated:
Just because China and South Korea are banning, doesn’t mean that Taiwan should follow suit – there is a huge opportunity for growth in the future. We should emulate Japan, where they treat cryptocurrency as a highly regulated, highly monitored industry like securities.
According to Hsu, today’s statements by Koo are also followed by the successful passing of the “Financial Technology Innovation Experimentation Act’, in the same parliamentary session. If the bill passes, the legislation will effectively set a fintech sandbox for cryptocurrency and blockchain startups at a deregulated space.
Taipei will be a friendlier place for cryptocurrencies and ICOs. Now’s remarks from Taiwan’s regulatory chief represents a decidedly different approach to regulating cryptocurrencies and initial coin offerings (ICOs), a radical new form of fund raising driven by cryptocurrencies such as bitcoin and ether.
A little more than a month ago, China’s central bank announced a blanket ban on all ICOs, deeming them to be an illegal system of fundraising. The draconian legislation snowballed and is leading to the shuttering of bitcoin exchanges in mainland China. Last week, South Korea followed suit and prohibited ICOs regionally. Japan, on the other hand, moved to follow legislation that acknowledged bitcoin as a lawful way of payment from April this year.
Last week, Hsu explained the crippling regulation lead to “a chain reaction” of warnings by regulators and watchdogs across the world.
“I am worried that using both China and South Korea banning ICOs, all this hot money will flow to Taiwan’s stock market and real estate,” Hsu was reported as saying by the Financial Times last week. Any fears of Taiwan linking China and South Korea with blanket bans, as suggested by the FT report, have now been quelled by the friendlier regulator proceed by Taiwanese government today.