Taiwan’s financial regulator, the Financial Supervisory Commission (FSC), has released a set of guiding principles explicitly designed for crypto-related firms and businesses. Thanks to this significant development, the East Asian country seems closer to attaining regulatory clarity in its cryptocurrency industry.
Taiwan Restricts Offshore Virtual Asset Platforms In New Guidelines
In a press release published on Tuesday, September 26, Taiwan’s Financial Supervisory Commission unveiled a set of crypto-related guidelines called the “Guiding Principles for the Management of Virtual Asset Platforms and Transaction Businesses (VASP).”
According to the FSC’s statement, the new regulations focus primarily on customer protection from aspects such as transaction information transparency, customer asset custody methods, external expert assistance, and platform operators’ internal control management, amongst other things.
These guiding principles emerge as domestic virtual asset platforms are now required to maintain separate custody of company assets and customer funds, formulate a review procedure for listing and delisting crypto assets, and ensure full disclosure of necessary information.
Additionally, the new guidelines addressed the operation of overseas virtual asset platforms in Taiwan. According to the guidelines, offshore crypto platforms are not allowed to solicit business within the country or target Taiwanese nationals unless they have been registered under the company laws and declared anti-money laundering (AML) compliance.
Prior to this new regulatory framework, Taiwan’s cryptocurrency landscape has been largely unregulated and unchecked. However, it is worth noting that the Financial Supervisory Commission introduced rules against money laundering in 2021, mandating all digital asset platforms in the island country to comply with these regulations.
Nine Crypto Firms Join Forces To Form Industry Association
As mentioned in the new FSC guidelines, VASP operators in Taiwan are expected to come together and establish relevant associations to foster self-discipline. These associations will formulate self-supervisory statutes based on the contents of the guiding principles.
Interestingly, the country’s digital asset platforms recently announced the establishment of a preparatory group for an industry association. This union currently comprises nine companies, including major Taiwanese exchanges such as MaiCoin Group, BitoGroup, and Ace Exchange.
Wang Chenhuan, President of Ace Exchange, said in a statement:
The Association is a family and a beacon. It guides us in the direction, collects information, sets standards, builds consensus, speaks on our behalf, and leads us to further progress.
Other crypto firms in this group include BitstreetX, HOYA BIT, BitoPro, BITGIN, Rybit, XREX, and Shangbito. The preparatory organization plans to submit an application for the industry association in mid-October, aligning with the timing of the virtual asset guidelines.
Ultimately, establishing this VASP association will help promote the advancement and continued expansion of Taiwan’s domestic virtual currency industry, the preparatory group said.
The cryptocurrency total market cap on the daily timeframe | Source: TOTAL chart on TradingView
Featured image from Unsplash, chart from TradingView
