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Press Release

FSC Reminds the Public of Related Risks of Virtual Assets

2020-07-06
 
    The Financial Supervisory Commission (FSC) stated that it had issued press releases on December 19, 2017 and June 22, 2018 to remind the public to pay attention to related risks in virtual assets. In response to class action lawsuits recently filed by American law firms against several virtual asset operators and an increased number of reports on the use of blockchains and virtual currencies for illegal fundraising and fraud, the FSC wishes to call attention to the following matters:
 
 1. The prices of virtual assets fluctuate quickly and incur high investment risks. The public is advised to thoroughly study the business model before engaging in related transactions and always carefully review potential risks.
 
 2. Virtual assets are not currencies and related actions conducted with the use virtual assets constitute criminal offenses if they violate related regulations against fraud and illegal fundraising in the Criminal Code or the Banking Act. In addition, if the virtual asset is considered to be securities defined in Article 6 of the Securities and Exchange Act and the issuer fails to solicit funds, issue securities, or provide sales and transaction services to the general public in Taiwan in accordance with related regulations in the Securities and Exchange Act, it may be in violation of regulations in the Securities and Exchange Act and must bear related criminal liabilities.
 
 3. As for whether an issuer of a specific case is liable for violations of the Criminal Code, Banking Act, and Securities and Exchange Act, the facts of its actions shall be processed by judicial authorities.
 
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