ICO , IDO , IEO legal or illegal? legal problems

ICO, IDO, IEO are the IPO lottery in the cryptocurrency circle, which is the same as the IPO lottery. If you successfully subscribe to a good project, there is usually a considerable return. However, the most frequently asked question is whether Taiwan can participate or whether Taiwan officials can host it.

Regarding this issue, the following will be disassembled into detailed issues to discuss.

1. How does the Taiwan Financial Regulatory Commission currently regulate ICO, IDO, and IEO?

According to the STO specification of the Financial Supervisory Commission and the virtual currency business management measures, the STO issuer is limited to companies organized in accordance with my country's company law, and must comply with relevant regulations (such as investor qualification restrictions, more than 30 million must enter the sandbox, etc.) .

In short, although the FSC is open, the qualifications are quite strict. Therefore, no company or project in Taiwan has completed the issuance of tokens in accordance with the guidelines of the FSC. In addition, some scholars believe that foreign companies cannot conduct ICO, IDO, and IEO in my country.

2. Do foreign ICO, IDO, and IEO platforms need to follow the Taiwan Securities Exchange Act or regulations related to virtual currency?

When a foreign project conducts ICO, IDO, and IEO, and these tokens are securities in nature, and the sales target includes Taiwanese, do they need to apply the STO specification and virtual currency business management measures issued by the Taiwan Financial Regulatory Commission?

Before the development of blockchain technology, this issue was not an issue that attracted everyone's attention, because it is difficult to imagine that a company without any base in Taiwan, nor any agent, sales business, etc., can raise funds widely in Taiwan. But this problem has become a huge problem after the careful implementation of blockchain and cryptocurrencies.

At present, the FSC has not further explained the issue of foreign projects and Taiwanese subscriptions, but according to the opinions of domestic scholars, as long as Taiwanese are included and the place of sale includes Taiwan, Taiwan's laws and regulations must be applied.

Therefore, if the type of ICO, IDO, and IEO sold is a security token defined in my country and does not meet the registration exemption rules, it should be reported in accordance with Article 22, paragraph 1 of the Taiwan Securities and Exchange Act. bear criminal responsibility. At the same time, it is necessary to pay attention to whether there is any violation of the guidelines issued by the FSC. If fraud is suspected, there is also a criminal liability related to securities fraud.

3. Even if it can be applied outside of Taiwan, can Taiwanese courts enforce relevant penalties against foreign countries?

Although it is so stipulated, is there any way to implement the judgment of the Taiwan court? In the case of Glaucus Research Group, which happened in my country in April 2014, Glaucus Research Group is an American research institution. The stock was not worth buying at all, causing the company's stock price to plummet continuously. my country's competent authorities believed that the research institution was suspected of manipulating the stock price (deliberately shorting the company's stock) and then sued. In the end, the court also ruled that Glaucus Research Group lost the case and ruled that the property of the US research institution should be seized. Even so, have our competent authorities succeeded in seizing the property of American research institutions? This question remains a big question mark. Because there is no record of successful seizure of the property of American institutions on public information.

summary

Therefore, from the above analysis, it can be known that in principle, it is not possible to lead and issue tokens in Taiwan, but it is limited by the law enforcement capabilities of Taiwan's competent authorities and the ability of international mutual legal assistance and cooperation. [Projects released in foreign countries] (including foreign projects and Taiwanese It seems that there will not be too many legal disputes for Taiwanese to participate in the subscription and fundraising of projects in foreign countries.

- This is also the common practice at present.

However, although the public can simply participate in ICO, IDO, and IEO, on the other hand, whether these projects must comply with his self-published white paper, whether there will be excessive touts about their own projects, and how to waste fundraising proceeds, etc. Under the supervision of any competent authority, you must do certain homework before investing.