Crypto Congressman Lawmaker Attempts to Modernize Crypto and Blockchain Regulation
The Taiwanese legislator known as Jason Hsu, decided to publish a new list of policy recommendations in order to help categorize cryptocurrency startups. The intention is to modernize the regulation around virtual currencies and blockchain technology. In this way, a new legal framework could be implemented for security tokens.
Moreover, Mr Hu has also asked the Taiwanese Finance Committee working at the legislature to issue new guidelines for Initial Coin Offerings (ICOs).
According to the Taipei Times, Wellington Koo, who works as the chairman of the Financial Supervisory Commission said that ICOs should be regulated by June 2019. He explained that they will be setting standards to outline how ICOs should be conducted. Additionally, Koo said that these standards would outline how the tokens could be classified as securities. However, he explained that if the cryptocurrencies are used to purchase goods and act in a manner that is not related to how securities offerings work, they would not be reached by the new regulations.
At the same time, Hsu said that the framework that will be proposed will go even further in terms of regulations, taxation issues and consumer protection. The press release unveiled on Friday says that they will require the MOEA to develop these new guidelines for the industry.
In addition to it, following the French Commercial Growth and Transformation Act and the U.S. Howey Test, he suggested creating a new regulation for security token offerings (STOs). This would allow regulatory agencies to know how to treat these new STOs. Investors would also have a clear framework about what they are trying to do.
Although there are some countries that are trying to impose new regulations to the virtual currency market, Circle’s CEO, Jeremy Allaire, said that the most important countries should create a common or coordinated regulatory framework for virtual currencies and blockchain technology.