- The Taiwan #Financial Supervisory Commission has drafted 13 guiding principles, which are set to be officially announced in September 2023, to provide clarity on legal behavior and penalties for non-compliance in the virtual #asset industry.
- Notable points from the draft principles include barring overseas companies from advertising and soliciting business in Taiwan if they fail to comply with regulations.
- Regulated businesses can issue #virtual assets, provided they provide a detailed white paper with issuer information, issuance details, subscription conditions, and potential climate impact of the consensus mechanism.
- Issuance of #stablecoins is prohibited due to concerns about the stability of the national sovereign currency.
- #Exchanges are required to establish listing and delisting review procedures and maintain records of operational processes.
- Clear separation of "company assets" and "user assets" is mandatory.
- Collaboration with banks for anti-money laundering obligations such as customer identity confirmation and transaction monitoring is compulsory.
- Exchange operators must define and implement policies for hot and cold wallet storage ratios to protect user assets.
- Engaging in illegal virtual asset derivative financial product trading or security-related virtual asset businesses may lead to imprisonment of up to 7 years and a fine of up to 3 million New Taiwan dollars.
- These guiding principles aim to offer clarity and transparency to industry players, fostering a compliant environment for virtual asset businesses in Taiwan.
