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.
GlaxoSmithKline (GSK) in July made its consumer health products division a separate entity as it transforms into a world-leading biopharmaceutical company. By uniting science, technology and talent, the company is aiming to prevent and treat diseases with innovative vaccines, specialty pharmaceuticals and general medicines. GSK’s headquarters annually invests NT$192 billion (US$6.07 billion) in research and development, focusing on immune science and advanced technologies in human genetics. GSK’s drug and vaccine development focuses on infectious diseases, HIV, oncology and immunology. Investing in clinical trial research each year, GSK also brings drug development to Taiwan. It cooperates with 17 medical institutes and research
SLUMPING DEMAND: Inventory has climbed by up to 12 weeks as suppliers are under mounting pressure to offload excessive reserves, a TrendForce report said The price of DRAM chips is expected to fall at a steeper rate of 13 to 18 percent next quarter, as high inflation continues to weigh on demand for consumer electronics, causing chip inventories to soar, market researcher TrendForce Corp (集邦科技) said yesterday. The downtrend in DRAM prices could extend from a quarterly decline of 10 to 15 percent in the third quarter, the Taipei-based researcher said. “Demand for consumer electronics continued to stagnate during the third quarter, which used to be a high demand season,” TrendForce said in a statement. “During the quarter, memorychip consumption and shipments both showed quarterly
INEXPENSIVE POWER: Group chairman Gautam Adani said 70% of the investment would go into energy transition, with a focus on green hydrogen India’s Adani Group is to invest more than US$100 billion over the next decade, most of it in the energy transition business, chairman Gautam Adani said yesterday, as the ports-to-energy conglomerate accelerates an already aggressive expansion plan. After founding the group in 1988 as a commodities trading business, the 60-year-old has ventured into multiple sectors, mainly in the infrastructure space and in line with the priorities of the government of Indian Prime Minister Narendra Modi. “As a group, we will invest over US$100 billion of capital in the next decade,” Adani, the world’s second-richest person, told the Forbes Global CEO Conference in
Foxconn Technology Group (富士康科技集團) is to invest US$1.75 million in a joint venture with PT Indika Energy Tbk to explore commercial electric vehicle (EV) and electric battery business opportunities in Indonesia, the Taipei-based company said yesterday. With the investment, Foxconn would hold a 40 percent stake in the joint venture, PT Foxconn Indika Motor, while PT Indika would own 60 percent. The collaboration is an extension of a memorandum of understanding signed in January by Indika Energy, Foxconn, Gogoro Inc (睿能創意) and others aiming to build an electric vehicle supply chain in Southeast Asia’s biggest economy. Gogoro, in which Foxconn owns a 0.76