The Financial Supervisory Commission (hereinafter referred to as FSC) issued press releases on December 19, 2017 and June 22, 2018 to remind the public to pay attention to the risks associated with virtual assets. Due to the recent class action lawsuit filed by law firms in the United States against a number of virtual assets firms and frequent reports of fraud cases involving the use of blockchain and virtual assets to solicit funds, the FSC once again calls for the following:

 

1.The price of virtual assets fluctuates greatly and the investment risks are high. Before engaging in relevant transactions, the public should fully understand the operating mode and carefully evaluate the possible risks.

2.Virtual assets are not currencies, and it is a criminal offence if the use of virtual assets concerning fraud and illegal fund raising involves any violation of the laws and regulations such as the Criminal Code and the Banking Act. In addition, if the virtual assets are securities as specified in Article 6 of the Securities and Exchange Act, relevant criminal liabilities shall be borne if it involves a violation of the provisions of the Act.

3.As to whether or not the circumstances of the case involve criminal liabilities as in the Criminal Code, Banking Act and Securities and Exchange Act, the specific facts of the act shall be determined and dealt with by the judicial authorities.