While the Executive Yuan has yet to decide on a regulatory system for cryptocurrencies and initial coin offerings (ICOs), the Financial Supervisory Commission (FSC) yesterday said it would only oversee enforcement of money laundering policies.
The commission maintains an open stance and welcomes all industry innovations, Banking Bureau Deputy Director Sherri Chuang (莊秀媛) said at a news conference, adding that it prefers to monitor developments to avoid stifling early-stage growth.
As cryptocurrencies and the issuance of new “coins” are classified as commodities, the virtual assets do not fall under the commission’s jurisdiction, Chuang said.
The commission is only involved in preventing money laundering through virtual assets, she said.
The situation is similar to that of lease finance companies, where the commission’s involvement is limited to money laundering prevention, she added.
ICOs, which have been billed as the future of fundraising, do not cross any regulatory red lines in Taiwan, Securities and Futures Bureau Chief Secretary Chien Hung-ming (簡宏明) said.
Each ICO would be assessed on a case-by-case basis, he said, adding that regulators are primarily concerned with examining the fundraising prospectus of each coin issuance.
The commission would assess each issuance to determine if they should be classified as a security or a virtual commodity, he added.
“It is very difficult to define broadly, as each case is different,” Chien said.
Separately yesterday, the commission confirmed that four Taiwanese companies are waiting to seek a stock listing for their Chinese subsidiaries.
To prevent equity dilution and inadequate transparency, the Taiwan Stock Exchange and Taipei Exchange have implemented rules to ensure shareholders’ interests, the commission said.
Taiwan-based parent companies would be required to seek board of directors and shareholder approval, as well as third-party expert opinions, before they may cut holdings in China-based subsidiaries by more than 3 percent within three years, the commission said.
Merida Industry Co (美利達) has seen signs of recovery in the US and European markets this year, as customers are gradually depleting their inventories, the bicycle maker told shareholders yesterday. Given robust growth in new orders at its Taiwanese factory, coupled with its subsidiaries’ improving performance, Merida said it remains confident about the bicycle market’s prospects and expects steady growth in its core business this year. CAUTION ON CHINA However, the company must handle the Chinese market with great caution, as sales of road bikes there have declined significantly, affecting its revenue and profitability, Merida said in a statement, adding that it would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
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