Taiwanese Lawmaker Proposes Regulating Cryptos on National Standards

October- 29, 2018 | AtoZ Markets

Taiwanese legislator Jason Hsu has published a set of policy recommendations, for aiding cryptocurrency startups in the country.

The recommendations included addressing the Ministry of Economic Affairs to create a new “business category”, in addition to putting security tokens into a new legal framework.

The study Hsu carried out included as well calling the Taiwanese legislature’s Finance Committee for issuing guidelines for initial coin offerings (ICOs), putting consumer protection on top in them.

.. And a Proposal for Regulating STOs

In his turn, Wellington Koo – the chairman of the Financial Supervisory Commission, told the committee that regulating ICOs on national standards will be completed on June next year, according to the Taipei Times’ report the last week.

Koo announced that the standards will set the broad lines for how tokens could be classified as securities, emphasising that the new regulations will not cover cryptocurrencies that are used for purchasing goods or used outside securities offering.

The press release said that MOEA will need to release new guidelines with regard to consumer protection and taxation, to correspond with Hsu’s proposal.

He also suggested a specific proposal for security token offerings (STOs)

Based on the French Commercial Growth and Transformation Act and the U.S. Howey Test, Koo proposed as well regulate Security Token Offerings (STOs).

STOs might fall under equity crowd-funding rules and related laws, as per the proposal.

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