New Law To Simplify Rules For Holding ICO In Taiwan
The Taiwan Financial Supervisory Commission (FSC) is rewriting the law that regulates ICO campaigns in the country. New changes should ease tokensales and make the coins as liquid as traditional stocks. The statement was made by the head of the regulator Wellington Koo in an interview to The Taipei Times.
As Ku clarified, these rules will not apply to ICOs of utility tokens, which are developed not for trading, but for use in a specific application or project. In his opinion, the more control comes from the state, the weaker the new economic model is. Therefore, the Commission is not going to restrain the creativity and productivity of cryptocurrencies — unless they are used as securities.
If a company holds an ICO, and the Commission recognizes these tokens as securities, then regulators will apply local securities laws for such security tokens.
Taiwan considers cryptocurrencies as assets rather than currencies, for tokens have no intrinsic value, according to the head of the Central Bank Yang Chin-long.
New standards to regulate initial coin offerings will be prepared by June 2019. The Commission representatives believe that in order to create a legislative basis for ICOs, it is necessary to research other countries’ standards in the industry.
Taiwanese lawmakers also mentioned a recent report by ICO advisory company Satis Group. According to the analysts, 127 ICO white papers, or 81% initial coin offerings worldwide, are considered as fraudulent.
Previously, the Bermuda authorities approved the first-ever ICO in the state.