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News

Taiwan To Unveil Cutting-Edge Crypto Rules: A New Era For Digital Asset Regulation

September 7, 2023 - Around 2 mins mins to read

Key Points:

  • Taiwan’s FSC will release crypto regulation guidelines by September’s end, focusing on anti-money laundering and fair practices.
  • The rules will require offshore exchanges to comply and prohibit illegal foreign crypto business solicitation.
  • Taiwan’s approach aligns with international standards, enhancing crypto oversight in the country.
Taiwan’s Financial Supervisory Commission (FSC) is set to introduce comprehensive guidelines for virtual asset service providers (VASPs) to ensure effective regulation of crypto assets and combat money laundering.
Taiwan To Unveil Cutting-Edge Crypto Rules: A New Era For Digital Asset Regulation
Taiwan To Unveil Cutting-Edge Crypto Rules: A New Era For Digital Asset Regulation 2

The FSC’s “Guiding Principles for the Management of Virtual Asset Platforms and Trading Businesses (VASP)” will be officially unveiled before the end of September, as reported by local news agencies. These guidelines encompass ten key principles aimed at fostering self-regulation within the virtual asset services industry.

The FSC’s approach includes stringent information disclosure requirements, the establishment of standards for listing and delisting assets, the separation of platform and customer assets, and the enforcement of anti-money laundering measures.

The FSC also intends to crack down on illegal business solicitation by foreign currency dealers.

Taiwan plans to restrict offshore crypto exchanges from operating onshore unless they comply with these forthcoming guidelines. The FSC will assume the role of supervising virtual asset financial investment and payment activities, following the government’s decision in March 2023 to enhance crypto asset regulation.

The FSC will further emphasize transaction fairness, transparency, and security by requiring companies to strengthen contract formulation, advertising practices, and complaint handling.

They will also establish systems for continued operations, information security, and the management of private keys in hot and cold wallets, alongside internal control and audit systems.

Additionally, the FSC will require exchanges and firms to declare compliance with anti-money laundering and counter-financing of terrorism laws. Overseas virtual asset platform operators must register with the FSC to conduct business in Taiwan.

Notably, the guidelines aim to prevent foreign VASPs from illegally soliciting business in Taiwan unless they adhere to local regulations and declare compliance with anti-money laundering rules.

Taiwan‘s regulatory approach aligns with international standards and draws inspiration from regulatory frameworks in the European Union, Singapore, and Japan.

In a landscape where mainland China has imposed a complete ban on crypto trading and mining, Taiwan’s move to establish these guiding principles represents a significant step towards responsible crypto regulation and oversight.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

China

crypto

FSC

Taiwan

VASP

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Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

Taiwan To Unveil Cutting-Edge Crypto Rules: A New Era For Digital Asset Regulation

Key Points:

  • Taiwan’s FSC will release crypto regulation guidelines by September’s end, focusing on anti-money laundering and fair practices.
  • The rules will require offshore exchanges to comply and prohibit illegal foreign crypto business solicitation.
  • Taiwan’s approach aligns with international standards, enhancing crypto oversight in the country.
Taiwan’s Financial Supervisory Commission (FSC) is set to introduce comprehensive guidelines for virtual asset service providers (VASPs) to ensure effective regulation of crypto assets and combat money laundering.
Taiwan To Unveil Cutting-Edge Crypto Rules: A New Era For Digital Asset Regulation
Taiwan To Unveil Cutting-Edge Crypto Rules: A New Era For Digital Asset Regulation 4

The FSC’s “Guiding Principles for the Management of Virtual Asset Platforms and Trading Businesses (VASP)” will be officially unveiled before the end of September, as reported by local news agencies. These guidelines encompass ten key principles aimed at fostering self-regulation within the virtual asset services industry.

The FSC’s approach includes stringent information disclosure requirements, the establishment of standards for listing and delisting assets, the separation of platform and customer assets, and the enforcement of anti-money laundering measures.

The FSC also intends to crack down on illegal business solicitation by foreign currency dealers.

Taiwan plans to restrict offshore crypto exchanges from operating onshore unless they comply with these forthcoming guidelines. The FSC will assume the role of supervising virtual asset financial investment and payment activities, following the government’s decision in March 2023 to enhance crypto asset regulation.

The FSC will further emphasize transaction fairness, transparency, and security by requiring companies to strengthen contract formulation, advertising practices, and complaint handling.

They will also establish systems for continued operations, information security, and the management of private keys in hot and cold wallets, alongside internal control and audit systems.

Additionally, the FSC will require exchanges and firms to declare compliance with anti-money laundering and counter-financing of terrorism laws. Overseas virtual asset platform operators must register with the FSC to conduct business in Taiwan.

Notably, the guidelines aim to prevent foreign VASPs from illegally soliciting business in Taiwan unless they adhere to local regulations and declare compliance with anti-money laundering rules.

Taiwan‘s regulatory approach aligns with international standards and draws inspiration from regulatory frameworks in the European Union, Singapore, and Japan.

In a landscape where mainland China has imposed a complete ban on crypto trading and mining, Taiwan’s move to establish these guiding principles represents a significant step towards responsible crypto regulation and oversight.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.