VASP self-discipline standards are officially released!
Taiwan's virtual asset industry is developing rapidly, but the accompanying transaction risks and market order issues have also attracted much attention. To this end, the Virtual Currency Business Association of the Republic of China (TWVASP) launched the Virtual Asset Service Providers (VASP) self-regulatory regulations, aiming to strengthen investor protection and promote the healthy development of the market.
According to the Code, operators need to adhere to the following core principles:
Investor protection: Business operators should provide a transparent rate structure to ensure that investors can clearly understand transaction fees and other costs. At the same time, it is necessary to clearly disclose potential risks, avoid misleading marketing, and ensure investors’ right to know.
Asset security: Business operators need to set up special cold wallets and multi-signature mechanisms to protect user assets and prevent hacker attacks. In addition, the platform must ensure daily asset liquidity to avoid difficulties in withdrawing funds for users due to insufficient fund allocation.
Internal governance: The regulations require businesses to establish a strengthened internal audit system, including KYC (know your customer) and AML (anti-money laundering) measures, to ensure that all transactions are compliant and to prevent illegal funds from flowing into the virtual asset market.
Information transparency: The regulations clearly require businesses to regularly disclose financial reports and internal control structures to enhance market transparency and enhance investor confidence.
The significance and challenges of promoting self-discipline norms
The launch of the self-regulatory regulations is regarded as an important step towards the maturity of Taiwan's virtual asset industry. The association stated that this specification will help the market establish a trust mechanism, attract more international capital inflows, and promote Taiwan to become a regional virtual asset center in Asia. However, the implementation of self-regulatory regulations also faces challenges, including how to ensure that small businesses have the ability to implement the regulations and how to deal with vicious competition on some platforms.
Experts point out that the rapid changes in the virtual asset market mean that regulations need to have a certain degree of flexibility to cope with the challenges posed by new technologies and market models. At the same time, the industry also expects the government to further improve the regulatory framework on the basis of self-regulation and provide clearer legal status and protection.
Overall, the release of Taiwan's virtual asset self-regulatory regulations not only actively protects the rights and interests of investors, but also demonstrates Taiwan's determination to proactively lead financial innovation in the digital economy era. Whether it can be truly implemented in the future requires industry, government, and academia to work together to create a healthy, safe, and internationally competitive virtual asset market.
Self-discipline and standard key points lazy bag
If you are also the kind of person who feels dizzy when reading legal provisions, don’t worry, (CryptoCity) has compiled a lazy bag for you as follows:
Core Spirit
Protect investors and maintain market fairness
Main normative points
1. Advertising restrictions
Exaggeration and misleading are prohibited:
Ads may not contain exaggerated, deceptive, or misleading content.
You are not allowed to predict the rise or fall of currency prices at will, nor can you promise to guarantee profits.
It is strictly prohibited to use exaggerated words such as "lowest", "best" and "only".
2. Investment risk disclosure
Risks must be clearly presented:
Advertisements must clearly state investment risks and use clearly visible fonts.
Positive publicity must also report related risks to maintain a balance.
3. Business with integrity
Based on integrity:
Do not copy or confuse the names or brands of other businesses.
Investors’ privacy must be protected and no behavior may damage the credibility of peers.
4. Strictly review cross-industry cooperation
Advertisement content must be legal:
It is strictly prohibited to cooperate with advertising related to pornography, violence, gambling and other illegal content.
Do not link to illegal websites or cooperate with illegal operators.
5. Platform Responsibility
Provide a complete customer protection mechanism:
A complete complaint channel needs to be established and customer complaint records should be kept for at least 5 years.
Customer complaints must be handled immediately to ensure the rights and interests of investors.
The focus is: make virtual asset advertising more transparent and more honest, and inject a foundation of health and trust into the market!
Source: (CryptoCity) Cartography VASP Guild Customer Protection Self-Discipline Specification Key Lazy Pack
Impact on Taiwan’s KOLs and Internet Celebrities
Facing an increasingly stringent regulatory environment, virtual asset content creators and advertisers are facing unprecedented challenges. From avoiding exaggerated words to exposing market risks, from enhancing transparency to adapting to platform scrutiny, every step requires greater professionalism and responsibility. (CryptoCity) also sorted out the possible impacts for KOLs and Internet celebrities in Taiwan.
1. Content specifications are stricter:
When creating content, avoid using misleading or exaggerated superlatives such as "lowest," "best," and "only."
Content needs to avoid emphasizing benefits while ignoring risks.
2. Risk disclosure becomes an obligation: When promoting virtual assets, risks such as market volatility and legal uncertainty need to be explained, and high returns cannot be emphasized only.
3. Increased legal and reputational risks: If you fail to comply with the regulations, you may face legal liability or damage your reputation, especially when working with advertisers that do not comply with the regulations.
4. Cooperation opportunities may be restricted: Cooperation with overseas platforms that have not completed a money laundering prevention statement or do not comply with regulations may be restricted.
5. Improve trust and transparency needs: Audiences have higher requirements for the authenticity of content, and KOLs need to strengthen transparency to maintain trust.
6. Risk of reduction in advertising revenue: Due to stricter regulations, some advertisers may reduce relevant promotional budgets, affecting revenue sources.
7. The need to improve professional capabilities: It is necessary to master basic virtual asset knowledge and correctly interpret regulations to avoid accidentally touching the law.
8. Strengthened platform monitoring: Social platforms may strengthen review of virtual asset content, and illegal content may be removed from the shelves or banned.
(Encrypted City) Tips
If you are worried about coming into contact with regulatory issues, (CryptoCity) has also compiled three suggestions for content creators:
1. Improve professional knowledge: Strengthen basic knowledge related to virtual assets and ensure that the content is legal and compliant.
2. Hire a legal advisor: Conduct professional review of cooperative advertising content to avoid legal risks.
3. Focus on educational content: Establish a professional image through educational content and reduce purely sales-oriented publicity.
Source: (CryptoCity) Chart: The impact of VASP guild customer protection self-discipline standards on KOLs
"Taiwan's self-discipline of virtual assets is a lazy bag!" A look at the eight major impacts on industry and KOL." This article was first published in "Crypto City"