Taiwan Drafting National ICO Standards
The Taiwanese Financial Supervisory Commission is drafting a set of national standards for initial coin offerings. The regulator allegedly intends to make tokens as easy to invest and as liquid as stocks. The commission emphasizes that it”has no intention of controlling the imagination and productivity related to cryptocurrencies if they are not used as securities”
The chairman of Taiwan’s Financial Supervisory Commission (FSC), Wellington Koo, has allegedly confirmed that the commission is drafting national standards for initial coin offerings (ICOs). The FSC aims”to create virtual tokens as easy to invest in as stocks and equally as liquid,” the Taipei Times reported on Oct. 23.
In a fund committee meeting, Chinese Nationalist Party (KMT) legislator William Tseng asked Koo whether the government would govern ICOs. Tseng pointed out that 127 ICO whitepapers worldwide were found last year to be imitation, the book described, including that 80 whitepapers were proven to be inaccurate as of April. The legislator also quoted findings from Satis Group demonstrating that 81 percent of ICOs have been identified as scams.
The information outlet conveyed Koo’s reply:
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, would not be covered by the standards.
In May, China’s National Committee of Experts on the Internet Financial Security Technology, a Chinese government-backed business organization, stated it discovered 421 bogus cryptocurrencies. Independently, the Wall Street Journal examined 1,450 ICOs and”found 271 with red flags which include plagiarized buyer documents, promises of guaranteed returns and fake or missing executive teams”
Taiwan’s Securities and Futures Bureau Deputy Director-General Tsai Li-ling was quoted from the Taipei Times claiming:
People often confuse an ICO with the trading of cryptocurrencies.
The Senate of Taiwan’s central bank, Yang Chin-long, advised the fund that”the government will respect cryptocurrencies as virtual assets or commodities instead of monies, since they don’t have any intrinsic worth.” Tsai declared that”cryptocurrency trading is comparable to investing in goldfor the commission just implements money laundering controls”
If a token works like some collateral,”the commission will specify it as a’securities token’ and subject it to the Securities and Exchange Act,” the book quoted Tsai describing,” including:
The issuer would also need to disclose information similar to what companies that are publicly traded need to do now.
Concerning the time period of the ICO criteria,”The draft is to be completed by June next year,” the information socket detailed, noting “The commission has no intention of controlling the creativity and productivity related to cryptocurrencies if they aren’t utilized as securities”
“The more people govern, the further this new financial behaviour wanes,” Koo was quoted saying. In June, the FSC suggested it intended to preserve only a limited supervision of cryptocurrencies and concentrate on anti-money laundering measures. In April, news.Bitcoin.com noted that Taiwanese bitcoin regulations are expected by November.