Briefing: Taiwan lawmaker calls for cryptocurrency rule update
Briefing: Taiwan lawmaker calls for cryptocurrency rule updateOct 29, 2018|In On the Cusp|By Bailey Hu
Taiwanese Lawmaker Proposes New Business Category for Crypto Companiesâ"CoinDesk
What happened: As the mainland gears up for new restrictions on blockchain companies, Taiwan lawmaker Jason Hsu is calling for cryptocurrency regulations aimed at helping the technologyâs development. Among the policy recommendations published last Friday, he asked that Taiwanâs Ministry of Economic Affairs designate a new business category and laws for security tokens. He also urged that the government issue guidelines on initial coin offerings (ICOs) to protect consumers. Hsuâs proposal goes further than plans by Taiwanâs Financial Supervisory Commission chairman to set ânational standardsâ for ICOs by next June. Those standards, which have yet to be outlined clearly, would p robably define what tokens may be categorized as securities but wouldnât cover non-securities-related cryptocurrencies.
Why itâs important: If passed into law, Hsuâs proposals would set in place regulations that are similar in part to existing laws in the US and France. Security tokens and security token offerings (STOs) allow crypto startups to acquire funding more directly from investors, but may also offer risks to consumers. By regulating securities more closely, Taiwan could establish more accountability within its cryptocurrency market and help it grow. Whether or not Hsuâs proposals pass, current government initiatives offers a direct contrast to mainland China, where ICOs and crypto trading have been subject to major crackdowns.Source: Google News Taiwan | Netizen 24 Taiwa n