Taiwanese legislator, Mr. Jason Hsu issued a list of policy suggestions aimed at aiding digital currency startup, including one that would see that would see the Ministry of Economic Affairs (MOEA) develops new business category and new legal framework for security tokens.
Mr. Jason Hsu further called for the Taiwanese legislature’s Finance Committee to publish guidelines, for Initial Coin Offering (ICO) with a focus on customer protection. His suggestion comes just days after the nation’s financial regulator declared it would set up ICO regulations within the next eight months.
The Taipei Times reported last week that Mr. Wellington Koo, the Chairman of Budgetary Supervisory Commission told the committee that ‘national standard’ for how ICOs should be conducted would be finished by June next year.
He stated that these standards would likely outline how token may be assigned as securities but notably added that digital currencies being used to buy goods or act in a manner unrelated to securities offering wouldn’t fall under the new regulations.
As per Friday’s press release, Mr. Jason Hsu suggested framework would go further, requiring the MOEA to develop new consumer protection and taxation guidelines.
He further recommends a specific proposal for security token offerings based on French Commercial Growth and Transformation Act and the U.S. Howey Test. It signed into Law his proposal would explain which token sales would fall under the country’s Securities and Exchange Act. Security token offerings could likewise fall under equity crowd-funding rules and related laws, Mr. Jason Hsu’s press release noted.