The Virtual Currency Business Association of the Republic of China (VASP Association) officially announced self-regulatory regulations for review by the Financial Supervisory Commission on November 30, which include member self-discipline conventions, self-regulatory regulations for the review of virtual assets on and off the shelves, self-regulatory regulations for customer protection, and prevention and combat of money laundering. Self-discipline and standardization of matters needing attention. (Preliminary summary: The end of personal currency merchants) Taiwan’s new anti-virus regulations will go into effect on 11/30. Virtual asset services are not allowed without registration) (Background supplement: Combating fraud) The online “advertising real-name system” will be implemented on New Year’s Day next year, the Financial Supervisory Commission: VASP registration The system will be launched by the end of the year) This article is a contribution from the reader's opinion and has nothing to do with the position of the dynamic zone. Recently, Taiwan's "Virtual Currency Association" announced a new money laundering prevention law. This professional organization recognized by the Financial Supervisory Commission finally has a special law that can define the industry. Standardizing and combating fraud may seem like an exciting milestone for Taiwan's encryption industry, but in fact it has caused turmoil in the industry. It reminds me that the development of Taiwan's industry in the past two decades has always gone on the wrong side, missing opportunities to enter the world, and the government It is really sad that I am so complacent about such political achievements even though I am related to him. There is a chilling effect in the currency circle. Many of my old OG friends, as well as some project parties and agreements coming to Taiwan, have recently begun to express their intention to fade out of Taiwan’s currency circle in the short term. Some Internet celebrities have even become more low-key, fearing that they will be targeted by supervision. An old currency dealer who was a friend of mine also stopped taking orders from friends. He found out after asking because after reading the self-discipline provisions and asking many legal professionals, he was not sure how private transactions would be recognized by the government. It's a real thing to take in the mountains and save your life. These people may not necessarily have done anything harmful. Many of them are people who buy and sell privately with their friends. However, after November 30, the self-discipline clause of the "Virtual Currency Association" reads: Anyone who provides virtual currency services. Manufacturers and units must comply with the specifications of the Money Laundering Prevention Act and complete registration as required, otherwise it may be regarded as money laundering and smuggling. This leaves a gray low band in many cases. The question is: What is a virtual currency service? Who has the final say? I issued meme coins, but only a few people bought them. Is this considered a virtual currency service? I participated in the early activities of a new project, received an early airdrop, and even had great governance rights, but in the end the project ran away. Will I be held criminally liable? The answer is that today's supervisors and labor unions may not be able to answer these questions. Let's take a step back and talk about the questions they can explain: If I often trade USDT and Bitcoin with friends, the amount may reach a certain level. This will Is it possible to be listed as a currency dealer, or even need to apply for money laundering prevention registration, or even violate the law? But if someone maliciously accuses me of providing virtual currency services, how should I clear myself? Of course, I have asked these questions a long time ago, and the relevant people in the guild may tell you that as long as you do not do anything illegal, you will be fine. But in fact, the illegal things are caused by many people who do not understand cryptocurrency. Or real people can freely make their own decisions: The actual situation is that as long as you are engaged in business, it is likely that no one can help them, and they must explain to the government and the integrity police why they can sell cryptocurrency without registering for anti-money laundering; why Will their own wallets and cash flow be contaminated by the token cash flow involved in fraud, without them knowing it? In fact, anyone can transfer tokens and dirty money to any wallet. This is a basic feature of cryptocurrency. It is really idiotic to expect everyone to be on a compliant exchange and register for anti-money laundering before trading privately. , no flexibility at all, do they really know the real world of cryptocurrency? Do self-regulatory clauses have legal effect? Although it is only a self-discipline clause and does not have legal effect, in fact, in the enforcement of the Money Laundering Prevention Law, an additional advisory unit "Virtual Currency Association" has been added today. In other words, when problems arise in case investigation, the Integrity Police You can seek "expert advice" from this union. As long as it may be involved in the case, you don't have to actually break the law. Just a misunderstanding by the integrity police can get you into trouble. What’s worse is that most of the experts selected by the government are representatives from local exchanges in Taiwan. Anyone who actually trades cryptocurrencies knows that most people actually use overseas platforms, Defi, and memes. Currency, etc., you have to ensure that this group of "Taiwan local exchanges" have a fair stance and protect all common cryptocurrency users in Taiwan. There is no doubt that one person will be exposed; Even to put it ugly, for these "centralized local" expert groups, it is best for all private transactions and currency dealers to be caught, so that you can register exchanges in Taiwan to store value, but there is no doubt that such an approach is similar to a dictatorship. No different. It is impossible to ban all underground transactions and second-hand online auctions. This is already a gray area in the scope of the New Taiwan Dollar, but this should not be required in the cryptocurrency field. As for issues such as overseas exchanges and Defi, they may not be left to on-chain data experts or programmers who understand smart contracts to verify whether they are fraud. This group of centralized currency merchant experts may say that they cannot be regulated at present, but what are the implications? Cases such as carpets involve fraud, which makes the integrity police think that this is a new type of fraud case. Taiwan is going off the rails with international trends. After Trump was elected, the international crypto regulatory situation has undergone major changes. Not only has the Ripple case turned upside down, XRP has risen, and even Coinbase in the United States has begun to threaten to work with the new government to "liquidate the policy of persecuting cryptocurrency." politicians and industry. World Liberty Financial, a project of the Trump family, has also surged recently. After the US SEC regulatory change that will occur within a limited time, it is unlikely to restrict Defi, meme coins and other related units from requiring registration, because this If it does not comply with the cryptocurrency regulations expected by the new government, naturally we will see a regulatory direction that is more friendly to Defi. Looking back at the gap between Taiwan's current self-regulatory provisions and the actual trend, the self-regulatory regulations are obviously outdated and lived in the generation ten years ago. The following are examples: Those who regulate a large number of intensive transactions in virtual currencies "without special reasons" should report the transaction status representative It is absolutely impossible for meme coins to be issued in Taiwan using the same IP address for transactions using several unrelated trading accounts, and Taiwanese are not allowed to conduct airdrop transactions without reasonable reasons. Customers receiving multiple or multiple virtual currencies in small amounts will be Anyone who transfers or sells virtual currency to obtain legal currency without reasonable reasons should be directly arrested if V God comes to Taiwan. He also has an employment gold card. I sincerely invite everyone to report it. Further reading: V God smashes the market. Multiple meme coins, cash out 908 ETH! All proceeds from the 2.23 million mg were donated to charity. In addition to the above-mentioned cases, various forms of self-regulatory treaties are completely opposite to the actual trend, including Tornado, which has recently changed dramatically.There has also been a big reversal in the Cash case, as well as the current status and notification of Bitcoin ATMs in Taiwan. Extended reading: U.S. Court: The Treasury Department overstepped its authority by sanctioning Tornado Cash. Smart contracts are not property. Will the founder’s money laundering charges be dropped? If you look at the Bitcoin ATMs that are popular for money laundering in the United States, they are of course the most popular money laundering channels. However, they have not replaced them all in Taiwan for violating the money laundering prevention law. There will only be more and more in the United States, and each one is US dollars. Once you enter, you can completely switch to the pure mode of BTC. South Korea, which is ahead of us in regulation, has recently made a U-turn and is talking about opening up corporate bank accounts and currency issuance to keep up with the trend. However, the Taiwanese government and trade unions seem to be still sleeping. Extended reading: South Korea’s largest crypto venture capital broke the news: The government is expected to open up institutional investment in cryptocurrency and allow domestic currency issuance. Take stock of Taiwan...

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