Taiwan’s FSC to Create Security Token Offerings (STOs) Fundraising Exchange Product


Taiwan's Financial Supervisory Commission (FSC) has praised the potential of Security Token Offerings (STOs) for being established and serve as a significant fundraising mechanism for a plethora of new companies.

Therefore, the regulators are planning to officially adopt STOs as part of the existing fundraising mechanisms that have been approved for the Taiwanese companies. According to the Taiwan Economic Daily, the agency has set a timeline for the STOs adoption which they profoundly believe in offering more investor protection than the Initial Coin Offerings (ICOs).

The Process Is Underway

First, the gathering of industry experts is expected to discuss the innovative fundraising mechanism in April and the formulation process of rules that will guide STOs to be completed at the end of June 2019 this year.

Moreover, FSC Chairman Gu Lixiong explained the reasons as to why regulators are all open hands to adopting the STO fundraising mechanism. According to Lixiong, young folks are less likely to invest in the stocks and would instead prefer a more innovative mechanism.

Additionally, he claims that STO is the next big thing of capital markets, that may most probably affect Taiwan's popularity of the new creative teams in the global market for the next five or ten years. Hence, it's a no-brainer that regulators are working so hard to position Taiwan for the future apparently by creating the regulations at the moment.

Also, the top official mentioned that to promote STOs faster adoption the regulators have the task of approving the listing of the offerings on various platforms apart from the national stock exchange.

There is also a possibility of allowing the STOs exchange on over-the-counter (OTC) desk according to Lixiong but didn't come clear whether private institutions or even the government would be able to manage such desks.

If the authorities were to be successful in adopting STOs in Thailand, then it would show the effort in the Philippines where the regulators most recently came clean with a regulatory framework for the STOs.

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