FSC wants to make crypto investing as easy as trading stocks
The Taiwan Financial Supervisory Commission (FSC) is currently drafting a set of national standards for ICOs, it has been reported.
FSC chairman Wellington Koo (pictured below) confirmed these reports, according to the Taipei Times, a Taiwanese news outlet, and said that the commission wants to make virtual tokens or digital assets as easy and straightforward to invest in as stocks.
In response to the news, concerns were raised about the legitimacy of some token sales.
81% of ICOs are scams
Indeed, a recent report indicated that more than 127 ICO whitepapers issued last year turned out to be fraudulent.
And, according to the global report, an additional 80 ICO whitepapers were found to contain false information.
During a recent meeting, a Chinese lawmaker named William Tseng who has ties to the Chinese Nationalist Party (KMT), brought these concerns to the attention of chairman Koo, citing another study by Satis Group which found that 81 per cent of ICOs are scams.
In response, Koo explained: “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.”
A blanket ban on ICOs is currently in place in China; however, last May a report from China’s National Committee of Experts on the Internet Financial Security Technology, a Chinese government-industry organization, identified 421 fake ICOs.
ICO trading versus cryptocurrency trading
According to Taiwan’s Securities and Futures Bureau Deputy Director-General Tsai Li-ling, ICO is distinctive from cryptocurrency trading.
The governor of Taiwan’s Central bank Yang Chin-long (pictured below) told the finance committee that ‘the government tends to regard cryptocurrencies as virtual commodities or assets rather than currencies because they have no intrinsic value’.
He said: “Cryptocurrency trading is similar to trading in gold, for which the commission only implements money laundering controls.
”If a token function similar to a security, the commission will define it as a ‘securities token’. Thereafter subject it to the Securities and Exchange Act.”
Reports indicate that Taiwan’s ICO Standards draft will complete by June 2019. The FSC iterates that it has no intentions to hurt creativity and productivity relating cryptocurrencies if not as securities.