China’s Official People’s Daily Highlights Taiwan’s Bitcoin and ICO Regulation
June 19, the overseas version of People’s Daily reported that, Taiwan intends to incorporate Initial Coin Offering (ICO) and bitcoin trading into its regulatory framework due to the ICO and cryptocurrency craze on this island.
In early May, Taiwan-based cryptocurrency platform BitoEX have claimed to raised $10 million in 5 hours, with all 175 million BITO tokens sold to the public in just 26 hours. This breaking news spread rapidly in Taiwan investment community, after that, ICO has become a popular method of capital raising on this land.
Although the crypto market in Taiwan is still nascent compares to its near neighbors, such as South Korea and Japan. According to blockchain transaction database Elementus, Taiwan so far has contributed approximately 0.06% to global ICO fund raising activity. However, signs show that the crypto fever is beginning to catch on.
However, despite the capital market is crazy about this effective fund raising mode, the regulatory authorities still concerned about related safety issues.
Qiu Taisan, Taiwan’s Minister of Justice, confirmed that the Legal Department has invested other regulatory sectors including the Financial Supervisory Commission (FSCEY), Ministry of the Interior, the central bank, the National Police Agency (NPA) and the Ministry of Justice Investigation Bureau (MJIB) to jointly enhance the crypto regulation in Taiwan. The department is about to establish the ‘control mechanisms’ prior to the Asia Pacific Anti-Money Laundering Organization in Taiwan at the end of November.
Wellington Koo, the Chairman of Taiwan’s Financial Supervisory Commission indicated that, in South Korea, crypto investors are required to combine their real-name bank accounts with existing crypto trading accounts, or trading virtual asset straightly through a bank account.
He further added that, although Taiwan will not follow the paths of mainland China and South Korea in an outright ban on ICOs and other domestic crypto trading related activities, building a real-name registration system for bitcoin trading in Taiwan may still be necessary to enhance transparency.
The FSCEY also emphasized that local banks should strengthen crypto transaction monitoring. The banking sectors indicated that they have marked the crypto trading operators as ‘high-risk customers”, these customers cannot access to the online banking and the crypto-releated businesses must be processed over the banking counter.
Taiwan authorities have treated cryptocurrency and ICO with caution, meanwhile, they also want to adopt a friendlier stance to support the development and adoption of blockchain technology and the brand-new financial products in this area.