Taiwanese regulators have decided to ease the process of investing in ICO projects. It can be as simple as putting funds in the stock exchange.
Plans shared by the Chairman of the Commission for financial supervision (FSC) of Taiwan Wellington Koo (Wellington Koo). He said that the authority is developing regulations for projects involved in the primary placement of coins (ICO). These rules will greatly simplify the process of investing in such projects, as well as to ensure that tokens have become as liquid as stocks. Ku reported that the draft version of the regulations will be ready by the middle of next year.
Questions about the regulation the ICO was given to the Chairman of the FSC in particular because 81% of all such campaigns be a fraud, according to a recent study by the Group. However, as I found out a local Taiwanese publication Taipei Times, the Commission will monitor the placement of all the coins on the market: utility-tokens will remain outside the purview of the regulator. Recall that the term “utility” refers to the tokens that the startup gives to the customers for future purchases, and they serve as the “securities.”
According to Ku, the decision was made to avoid a situation where regulation could hinder innovation in the nascent sector.
“The Commission does not intend to create restrictions to creative and productive solutions related to cryptocurrency, if they are not used as securities,” — said the Chairman of the FSC.
It is worth noting that during his tenure, Ku has always supported the cryptocurrency industry. For example, a year ago the Chairman, speaking in front of the Taiwanese Parliament, said that it will not impose any restrictions on cryptocurrency activity in the country, as regulators in China or South Korea. Ku fully supports the idea of creating favorable conditions for the development of blockchain technologies and cryptocurrencies in Taiwan.
The same opinion adheres and member of Parliament Jason Xu, Yu-Yong (Jason Hsu Yu-Jen). In may he led a Parliamentary coalition in the blockchain (TPCB), which aims to develop a clear and favorable regulatory mechanism for cryptocurrency and blockchain industry. According to Xu Yu-Yung, Taiwan should not follow the example of China and South Korea and to impose restrictions because of the cryptocurrency industry has huge opportunities for growth in the future. Regulators should rather focus on the experience of Japan, where authorities are considering cryptocurrency as a strictly regulated and controlled industry on a par with the securities market.
