Taipei Exchange

In response to Fintech's innovation, and as a means of improving the convenience of fund raising for innovative enterprises while helping them fulfill the diversified requirements of fund raising, the competent authority has defined and announced Security Token Offerings (STO) as securities depicted in Article 6 of Securities and Exchange Act. These securities, which are initially open to any issuer with an amount of funds raised less than NT$30 million, are exempt from obtaining an effective registration with the issuing of securities according to Article 22, Section 1 of the Securities and Exchange Act. However, issuers are obligated to prepare prospectus and platform operators are required to apply for and acquire a special license. In addition, in consideration of the high technical content and high risk of STO, only professional investors are permitted to invest in STO fund-raising projects.

TPEx has been authorized by the competent authorities to announce regulations governing STO, formulating "Taipei Exchange Rules Governing the Operation by Securities Firms of the Business of Proprietary Trading of Security Tokens", "Taipei Exchange Rules Governing Information to Be Published in Prospectuses for Applications for Security Token Offerings for Over-the-Counter Trading", and "Principles for Information System and Security Control Operation Evaluation Reports Issued by Certified Public Accountants", "The Rules Establishing Standards for the Internal Control Systems of Securities Firms" and related internal audit enforcement rules, and "The Directions of pre-service and in-service Training of Associated Persons for the Securities Firms Operating Proprietary Trading of Security Tokens" , as well as amending "Taipei Exchange Standards Governing the Places of Business and Facilities of Securities Firms and Securities Introducing Brokers".