FSC warning on risks of investing in virtual assets

The Financial Supervisory Commission of Taiwan (FSC) issued a statement on Dec. 19 2017 on four risks of investing in virtual assets such as bitcoin.

• First, as the FSC call the public for prudence as the price of virtual assets fluctuates and is highly speculative.
• Second, it reminds that financial institutions may not participate in or provide virtual currency related services or transactions.
• Third, Token sold during ICO might be securities regulated by the Securities and Exchange Act. It that case ICOs should be handled in accordance with the relevant provisions.
• Fourth, if the issue or seller is involved in fraudulent acts, such as fictitious currencies, unreasonable high remuneration claims, it may be prosecuted as a criminal case.