Taiwan: FSC Says STO-Based Crowdfunding Mechanism Coming Soon
Originally published on: BTCMANAGER
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March 05, 2019
According to a report by local financial news outlet Taiwan Economic Daily, Taiwan’s Financial Supervisory Commission (FSC) has announced that it will establish a new mechanism to raise funds based on security token offerings (STOs).
Taiwan Could See New Exchanges Being Opened
The FSC is an independent government agency subordinate to the Executive Yuan of the Republic of China (Taiwan) and is responsible for regulating securities markets, banking, and the insurance sector.
The New Taipei headquartered financial watchdog has revealed plans to launch an STO-based fundraising platform. A conference scheduled to take place during the end of April 2019 will consider opinions of financial industry veterans and practitioners on the subject matter.
Notably, the FSC is aiming to formulate standards and issuance regulations pertaining to the STO-based fundraising mechanism by the end of June 2019.
Gu Lixiong, chairman, Taiwan FSC, hinted at the possibility of the launch of different exchanges for STOs beyond existing stock exchanges. He said:
“An STO is an emerging product of the next generation of capital markets, which may affect the popularity of Taiwan’s new creative teams in the international market in the next five to ten years.”
Push for STO Adoption
This, however, should not come as a surprise to close followers of the crypto industry. ICOs have often found themselves on the wrong end of the law the world over, and Taiwan is no exception.
BTCManager reported on January 28, 2019, how Taipei police nabbed 15 suspects involved in a scam ICO scheme known as IBCoins. The Ponzi scheme had generated nearly $8.13 million for the wrongdoers since September 2018.
STOs, on the other hand, provide many benefits and safeguarding mechanisms to investors. For instance, STOs require companies to complete the traditional process followed during an initial public offering (IPO) to get registered.
A strict registration process ensures that the company has complied with all the legal facets including KYC/AML requirements and background verification of personnel associated with the firm.
Other Asian countries including Thailand also seem to be onboard the STO train.
BTCManager reported on December 6, 2018, how Satang Corp., a highly-reputable Thai cryptocurrency exchange, had announced plans to launch its STO by early 2019 with the full backing of the Thai government.
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