Taiwan has taken a step toward regulating its cryptocurrency sector by officially establishing the Taiwan Virtual Asset Service Provider Association.
A total of 24 crypto firms, all registered with the Financial Supervisory Commission (FSC) for anti-money laundering (AML) compliance, have joined the association. This newly formed body is set to play a crucial role in the development and oversight of the crypto industry within the country.
BREAKING: Taiwan's crypto sector launched a new government-guided association for better self-regulation.24 crypto firms registered with the Financial Supervisory Commission for AML compliance. pic.twitter.com/2lGjayYyT1
— Kashif Raza (@simplykashif) June 13, 2024
The association will be chaired by Titan Cheng, founder and CEO of BitoPro, a leading cryptocurrency exchange in Taiwan. Winston Hsiao, co-founder and chief revenue officer of XREX, will serve as the vice chair. The association’s primary task is to create self-regulatory guidelines to ensure the industry’s proper functioning and alignment with government standards.
Role of the Financial Supervisory Commission
The FSC has mandated that the new association develop self-supervisory rules. The commission emphasizes the importance of the virtual asset industry’s growth and its connection to the broader societal and economic development of Taiwan. Hsiho Huang, director of the securities firms division at the FSC, stated,
“The FSC places great importance on the development of the virtual asset industry. We believe that the healthy development of this industry is closely related to the development of society and the economy.”
Since July 2021, the FSC has required cryptocurrency service providers to adhere to AML laws. This regulation aims to ensure that the industry operates transparently and securely, safeguarding against financial crimes.
Goals and Responsibilities of the Association
The Taiwan Virtual Asset Service Provider Association’s primary objective is to formulate self-regulatory guidelines. These guidelines will focus on the classification and grading management of virtual asset service providers (VASPs). The association aims to balance the industry’s growth with the need to meet governmental expectations and protect consumer rights.
The association stated that the self-regulatory guidelines will cater to both industry interests and government requirements. This initiative is expected to create a more structured and reliable environment for cryptocurrency activities in Taiwan.
In addition to the formation of the association, Taiwan’s Ministry of Justice has proposed amendments to the existing AML laws. These amendments would require both domestic and overseas crypto firms wishing to operate in Taiwan to register for AML compliance. Failure to comply with these regulations could result in imprisonment for up to two years.
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