Separate business category for crypto startups might be introduced in Taiwan

On Friday, the Taiwanese legislator Jason Hsu has published a list of recommendations for the development of cryptocurrency startups, in particular, the one for the Ministry of Economic Affairs (MOEA) to establish a new category of business and a new legal framework for security tokens.

Consumer protection in focus

Hsu also urged the Finance Committee of the Taiwanese Parliament to create new guidelines for initial offers of coins (ICO), with the emphasis on consumer protection within.

He also made a special proposal for security token offerings (STOs) based on the French Commercial Growth and Transformation Act and the American Huey test. If enshrined as the law, his proposal would clarify which tokens fall under the Taiwanese law on securities and exchanges. STOs, in particular, may be subject to stock crowdfunding rules and other related laws.

National standard

His proposal came in a few days after the country’s financial regulator announced the creation of the new ICO rules within the next eight months.

A week earlier, Financial Supervisory Commission chairman Wellington Koo said that the “national standards” for the ICO will be completed by June of 2019.

According to him, the standards will classify tokens as securities, but cryptocurrencies used to buy goods or actions not related to the offer of securities will not fall under the new rules.

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