TAIWAN Law and Practice Contributed by: Robin Chang, Sarah Wu and Eddie Hsiung, Lee & Li
(3) Types of security tokens: Permissible secu - rity tokens are limited to profit-sharing or debt tokens without shareholder rights. (4) Eligible investors and amount limits: Pro- fessional investors are eligible to participate in STOs, with a maximum subscription amount of TWD300,000 per STO for natural persons. To promote STO development, the FSC adjusted the policy in a January 2022 press release. Sub - sequently, TPEx expanded the scope of eligible foreign investors meeting specific criteria under the STO rules in 2022. (5) Issuance process: STOs must be conducted on a single platform, with the platform operator responsible for ensuring the issuer meets quali - fication requirements and prepares a required prospectus. In instances where the platform operator is itself an STO issuer, launching an STO requires prior review by TPEx. For tokens without the nature of securities: As indicated in 2.14 Impact of AML and Sanc- tions Rules and 6.1 Permissible Trading Plat- forms , for cryptocurrencies that do not possess the characteristics of securities, crypto exchang - es or trading platforms must comply with the Crypto AML Registration Regulations and the Crypto AML Regulations. The Crypto AML Reg - istration Regulations include specific provisions for issuers as follows: (1) With some exceptions, a VASP offering vir - tual asset exchange services must disclose key details about the virtual assets, including the token’s whitepaper, which should contain infor - mation about the issuer, among other things. (2) A VASP providing virtual asset trading plat - form services must establish criteria for review - ing virtual asset launches. These criteria should
cover, among other factors, information about the issuer and the legal risks associated with the issuer. Also, as indicated in 6.3 Impact of the Emer- gence of Cryptocurrency Exchanges , the VASP Guidelines encompass various aspects, includ - ing the obligations of an issuer related to the issuance of virtual assets, necessitating actions such as publishing “whitepaper” on the issuer’s website. Additionally, the VASP Guidelines out - line the mechanism for VASPs to review the launch of virtual assets. 10.5 Regulation of Blockchain Asset Trading Platforms Please see 2.2 Regulatory Regime , 2.14 Impact of AML and Sanctions Rules , 6.1 Permissible Trading Platforms and 6.3 Impact of the Emer- gence of Cryptocurrency Exchanges . 10.6 Staking Currently, there are no laws or regulations that specifically address staking services. As a result, it is necessary to review existing regulations to determine how staking should be classified. There has been some debate about whether staking could be considered deposit-taking Currently, there are no laws or regulations that specifically address crypto-related lending ser - vices. As a result, it is necessary to review exist - ing regulations to determine how such lending should be classified. Generally, if fiat currency lending is not considered a regulated activity, the same interpretation is likely to apply to crypto - currency lending. under the current Banking Act. 10.7 Crypto-Related Lending
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