FSC cautious over securities token laws

‘STEP-BY-STEP’: Securities and Futures Bureau official Tsai Li-ling said that the commission initially would only permit firms to offer interest payments as bonds

Taipei Times
Date: Apr 05, 2019
By: Kao Shih-ching  /  Staff reporter

The Financial Supervisory Commission (FSC) yesterday said it would take a cautious approach toward implementation of securities token offerings (STOs), as it plans to introduce new laws by June to address the growing popularity of virtual currencies.

Interested parties might be allowed to raise up to NT$30 million (US$973,489) through STOs, but blockchain-based tokens would not be allowed as equities, the commission said.

A securities token is a kind of virtual currency. Unlike bitcoin, which has no central issuer and can only be released through a process called “mining,” securities tokens are launched by companies aiming to raise funds.

“The securities tokens are issued in foreign countries as digital assets based on blockchain technology,” Securities and Futures Bureau Deputy Director-General Tsai Li-ling (蔡麗玲) told the Taipei Times by telephone.    [FULL  STORY

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