A lawmaker in Taiwan has proposed a new business category for the startups in the crypto sector. On 26th October 2018, Jason Hsu, a Taiwanese lawmaker prepared a list of policy recommendations that are aimed at aiding virtual currency startups, including the one that would see the Ministry of Economic Affairs launch a new category of business, as a new legal framework for the tokens. In addition to that, the Taiwanese legislature called on the Finance Committee of the Taiwanese lawmaking body to provide guidelines for ICO – Initial Coin Offerings, with a great emphasis on consumer protection.
Initial Coin Offering Regulations
This proposal by Hsu has come just days after the country’s financial regulator announced that it would set up Initial Coin Offering regulations within the next eight months. According to a report published on the Taipei Times last week, Wellington Koo, who is the chairman of the Financial Supervisory Commission informed the committee that the national standards on how the Initial Coin offerings should be carried on would be ready by 2019 June.
How Tokens Would Be Grouped By Securities
Speaking further on the matter, Mr. Jason Hsu went on to give his insights on this planned development. He announced that these planned standards are expected to outline the manner in which tokens might be classified as securities. He notably pointed out that the virtual coins that are being used to buy goods or work in a way not related to securities offerings would not be grouped under this new classification. The proposed new framework by this Taiwanese legislator would not stop there but go further. In addition to all that, it would require the Ministry of Economic Affairs to come up with new taxation and consumer protection guidelines, as highlighted in the recent press release.
Proposals For Security Token Offerings
Mr. Jason Hsu, who has been christened as the Crypto Congressman amongst his colleagues at the Taiwanese upper house is not done with his proposals. For some time now, this lawmaker has not relented on his push to ensure that cryptocurrency operations are modernized and can accommodate all. This is the reason he has been proposing new rules, particularly for the sales of tokens.
Part of his suggestions is particular proposals for the STOs- the Security Token Offerings that are entirely based on the French Commercial Growth & Transformation Act as well as the US Howey Test. This shows how far Jason Hsu has been able to go with his push to ensure that these new regulations see the light of the day. If this new proposal is signed into law, Mr. Jason Hsu’s recommendations would make it clear which token sales would be classified under the Securities and Exchange Act of the country. Security Token Offerings could also be classified under the rules of equity crowd-funding rules as well as the related regulations. Jason Hsu joins the list of several lawmakers who have wanted to see reforms in this market.