BY CNA Team - October 29, 2018
Taiwan’s “crypto congressman” pushes for STO rules
A Taiwanese lawmaker, Jason Hsu, known as the “crypto congressman”, is proposing that the country’s Economic Affairs Ministry come up with rules for security token offerings (STOs).
His suggestions, published in a list of policy recommendations on Oct 26, calls for rules on STOs to be based on the French Commercial Growth and Transformation Act and the Howey test.
Hsu, a tech entrepreneur-turned politician, says such a rule will determine whether initial coin offerings (ICOs) or token sales come under the country’s Securities and Exchange Act or under equity crowdfunding rules.
He also called for a new business category to be created for blockchain startups and says the Taiwanese legislature should issue guidelines for ICOs focusing on consumer protection and also guidelines on taxation.
Hsu pointed out that the new rules will not only outline how tokens can be classified as securities but argued that tokens used to buy goods or do not have securities-type features should not fall under these proposed rules.
His proposals come after Financial Supervisory Commission chairman Wellington Koo confirmed that a draft law on ICOs will be completed by June next year.
Image courtesy of Jason Hsu’s twitter.