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Taiwanese legislator proposes to create a new business category for crypto startups

On October 26, Taiwanese legislator Jason Hsu published a list of policy recommendations aimed at aiding cryptocurrency startups, including one that would see the Ministry of Economic Affairs (MOEA) create a new business category, as well as a new legal framework for security tokens.

Hsu also called for the Taiwanese legislature’s Finance Committee to issue guidelines for initial coin offerings (ICOs) with a focus on consumer protection.

Hsu’s proposed framework would require the MOEA to develop new consumer protection and taxation guidelines.

He also suggested a specific proposal for security token offerings (STOs) based on the French Commercial Growth and Transformation Act and the U.S. Howey Test. If signed into law, his proposal would clarify which token sales would fall under the nation’s Securities and Exchange Act. STOs could also fall under equity crowd-funding rules and related laws, Hsu’s release noted.