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.
“So far, holders of securities tokens enjoy certain ownership in the issuing companies and can receive dividends as if they are investing in stocks,” Tsai said.
“They can also receive interest payments from the sale of securities tokens as with corporate bonds,” she said.
As securities tokens possess securities-like attributes, their issuance would be subject to traditional securities regulations, she said.
However, the commission initially would only permit securities tokens to offer interest payments as bonds and would require the issuers to clearly state how many they plan to distribute, Tsai said.
The commission would prohibit companies from offering equities-like tokens, as such practice is more strictly regulated by the Company Act (公司法), she said.
“The offering of equities-like tokens are possible, but we prefer a step-by-step approach to see how STOs do first,” Tsai said.
The commission’s threshold of NT$30 million for fundraising followed discussions with several parties interested in STOs, Tsai said, adding that the amount should be enough for start-ups, or small or medium-sized enterprises.
Unlike an initial public offering, STOs would be exempted from some administrative requirements and could proceed much faster, Tsai said.
As for companies that intend to raise more than NT$30 million through an STO, they would have to run experiments in a regulatory sandbox so the commission could carefully monitor the risks, Tsai said, adding that sandbox investments would be limited to NT$200 million.
“So far, more than one company has expressed interest in running a sandbox experiment to provide virtual-currency services, but not everyone plans to launch an STO, a new investment tool that began to emerge in the second half of last year,” Department of Planning Director-General Lin Chih-chi (林志吉) said.
Maicoin (現代財富科技), a local platform for virtual currencies, has expressed an interest in an STO, Lin said.
The commission would counsel the firm before accepting its formal application, he said.
The commission would establish an independent platform for the trade of security tokens that is different from the Taiwan Stock Exchange or the Taipei Exchange, it said.
The commission said that plans to issue special licenses to companies operating virtual currencies, which would require special software to accept sell and buy orders.
However, the commission still has many issues to resolve, such as whether tokens should be standardized, or if tokens should be secured by collateral.
“We have outlined our strategy, but there is more to be discussed,” Tsai said, adding that the commission has invited private-sector parties to a forum next week to discuss the proposed regulations in detail.
TECH CLUSTER: The US company’s new office is in the Shalun Smart Green Energy Science City, a new AI industry base and cybersecurity hub in southern Taiwan US chip designer Advanced Micro Devices Inc (AMD) yesterday launched an office in Tainan’s Gueiren District (歸仁), marking a significant milestone in the development of southern Taiwan’s artificial intelligence (AI) industry, the Tainan City Government said in a statement. AMD Taiwan general manager Vincent Chern (陳民皓) presided over the opening ceremony for the company’s new office at the Shalun Smart Green Energy Science City (沙崙智慧綠能科學城), a new AI industry base and cybersecurity hub in southern Taiwan. Facilities in the new office include an information processing center, and a research and development (R&D) center, the Tainan Economic Development Bureau said. The Ministry
ADVERSARIES: The new list includes 11 entities in China and one in Taiwan, which is a local branch of Chinese cloud computing firm Inspur Group The US added dozens of entities to a trade blacklist on Tuesday, the US Department of Commerce said, in part to disrupt Beijing’s artificial intelligence (AI) and advanced computing capabilities. The action affects 80 entities from countries including China, the United Arab Emirates and Iran, with the commerce department citing their “activities contrary to US national security and foreign policy.” Those added to the “entity list” are restricted from obtaining US items and technologies without government authorization. “We will not allow adversaries to exploit American technology to bolster their own militaries and threaten American lives,” US Secretary of Commerce Howard Lutnick said. The entities
Minister of Finance Chuang Tsui-yun (莊翠雲) yesterday told lawmakers that she “would not speculate,” but a “response plan” has been prepared in case Taiwan is targeted by US President Donald Trump’s reciprocal tariffs, which are to be announced on Wednesday next week. The Trump administration, including US Secretary of the Treasury Scott Bessent, has said that much of the proposed reciprocal tariffs would focus on the 15 countries that have the highest trade surpluses with the US. Bessent has referred to those countries as the “dirty 15,” but has not named them. Last year, Taiwan’s US$73.9 billion trade surplus with the US
The Taipei International Cycle Show (Taipei Cycle) yesterday opened at the Taipei Nangang Exhibition Center, with the event’s organizer expecting a steady recovery in the industry this year following a tough last year. This year, 980 companies from 35 countries are participating in the annual bicycle trade show, showcasing technological breakthroughs and market development trends of the bicycle industry at 3,600 booths, the Taiwan External Trade Development Council (TAITRA, 外貿協會) said in a statement. Under the theme “Ride the Revolution,” the exhibition has attracted more than 3,500 international buyers from 80 countries to preregister for the four-day event, which is expected to
RSS