What happened: Taiwan will introduce a better-defined regulatory framework for ICOs by June 2019, said Gu Lixiong, Chairman of the Financial Supervision and Management Commission. Gu said the Commission will soon propose a relevant framework for ICOs tokens that fall under the securities category. Due to the lack of clear definition, cases of ICOs that involve illegal fundraising activities or fraud are currently evaluated by the Commission case-by-case.
Why it’s important: In Taiwan, many aspects of ICO and cryptocurrency are still operating in murky waters without a clearly defined regulatory framework. Financial institutions in Taiwan are wary of money laundering among other emerging issues, which makes them hesitant to work with local blockchain companies and exchange services. At this stage, cryptocurrencies and the tokens issued through ICOs are still classified as commodities. However, the Central Bank has signaled that regulating cryptocurrencies under the island’s existing AML (anti-money laundering laws) could soon take into effect. In sharp contrast with China, Taiwan is pushing ahead with plans to regulate cryptocurrencies and ICOs to create a more lenient environment for blockchain companies.