Taiwan is set to establish a regulatory framework for exchanges and cryptocurrencies, according to a report by Central News Agency (CNA). The Financial Supervisory Commission will be responsible for managing the industry, first through self-regulation with reference to international norms, and later through a special law. This comes after Taiwan investors lost heavily in the FTX Crash, and the government wants to prevent similar incidents from occurring in the country.

With the overall market value of cryptocurrencies exceeding $1 trillion, the government is keen to regulate the industry to ensure investor protection. Other countries, such as the European Union, Singapore, Japan, South Korea, and Israel, have already established financial regulators to oversee cryptocurrencies. Taiwan will follow suit, with the Financial Supervisory Commission taking on the role.

The government plans to adopt a phased approach to regulation, with the industry first self-regulating according to international norms. The Financial Supervisory Commission will continue to gather information on international trends while studying the best regulatory approaches. A special law for cryptocurrencies is also in the works.

Once a regulatory framework is established, the Financial Supervisory Commission will set principles and guidelines for the industry. Industry associations will then develop self-regulation codes to ensure internal control points are established, such as rules for asset segregation, wallet management, and product listings.

The government plans to submit the regulatory framework to the Executive Yuan for approval soon, with the announcement expected by the end of March or the beginning of April. However, it is worth noting that cryptocurrencies come in a wide range of forms, and not all can be easily defined and regulated by a single government agency. For example, non-fungible tokens (NFTs) may be difficult for the Financial Supervisory Commission to value. Therefore, the government is still working on how to assign regulatory responsibility for different forms of cryptocurrencies.

Overall, the establishment of a regulatory framework for exchanges and cryptocurrencies is a significant step for Taiwan in managing this fast-growing industry. It should help protect investors while promoting innovation and growth in the sector.

#Taiwan #nftcommunity #crypto2023 #cryptoregulation #azcoinnews

This article was republished from azcoinnews.com

Taiwan's recent approval of stringent regulations targeting cryptocurrency businesses reflects a proactive stance in managing the dynamic digital asset landscape. These measures aim to enhance transparency, accountability, and security within the burgeoning industry while mitigating risks associated with illicit financial activities.
Extending Regulatory Reach Beyond Borders
The scope of Taiwan's regulatory framework extends beyond its borders, impacting businesses and individuals providing virtual asset services or third-party payment services to Taiwanese citizens. Compliance with Taiwan's company law, AML measures, and registration requirements is mandatory for entities operating outside the country, underscoring the authorities' commitment to maintaining regulatory integrity.
Path to Compliance and Accountability
With an estimated 60 to 70 cryptocurrency businesses in Taiwan, the regulatory landscape is poised for transformation. All businesses will be required to declare and undergo comprehensive reviews, ensuring adherence to AML standards and regulatory guidelines. The impending establishment of a cryptocurrency business association will provide additional oversight and support, fostering a culture of compliance and accountability.
Strengthening Internal Controls for Enhanced Security
To bolster internal control mechanisms, cryptocurrency businesses will enlist the expertise of accountants. This collaborative effort aims to fortify compliance with regulatory standards, safeguarding against potential risks and enhancing the overall integrity of the financial system.
A Proactive Approach to Consumer Protection
Taiwan's proactive measures signify a commitment to protecting investors and consumers while fostering innovation in the digital asset market. By imposing stringent regulations, the authorities seek to instill confidence among stakeholders, ensuring the long-term sustainability and integrity of the cryptocurrency ecosystem.
Toward a Mature and Responsible Digital Asset Market
Taiwan's adoption of stricter regulations marks a significant milestone in the evolution of its digital asset market. As global cryptocurrency regulation continues to evolve, Taiwan's proactive approach serves as a model for fostering responsible growth while prioritizing consumer protection and financial integrity.

#Taiwan #BitEagleNews

CryptosHeadlines.com - The Leading Crypto Research Network

The cryptocurrency group in Taiwan has asked El Salvador for help in making better rules for cryptocurrencies.

Ad. Get UPTO $50 USDT Reward From CryptosHeadlines. Visit Official Tweet

The Taiwan Crypto Association talked to officials in El Salvador, like the Virtual Assets Bureau, Presidential Office, and central bank. They asked for help in making better rules for cryptocurrencies.

Right now, Taiwan’s rules don’t allow trading cryptocurrency derivatives or creating stablecoins like Bitcoin. They want to make new laws to support the cryptocurrency market. El Salvador is one of the few countries that like cryptocurrencies; they even made Bitcoin a legal way to pay for things in September 2021.

Taiwan’s approach to cryptocurrency regulations

During a public meeting about watching over digital money in Taiwan, they talked a lot about cryptocurrencies. They thought about letting people do more complicated types of trading with cryptocurrencies and making a special office for financial technology. People from big crypto places like Bitfinex and Binance were there too.

Taiwan wants to make a special office called the Virtual Assets Bureau to make sure people who use cryptocurrencies are safe and that trading digital money follows the rules. They also plan to make rules for companies that provide cryptocurrency services, and these rules should be ready by September 2023.

The Financial Supervisory Commission will be in charge of making sure cryptocurrencies are used correctly, that no one is doing illegal money stuff, and that crypto companies follow the rules.

FTX Crisis Sparks Taiwan’s Drive for Crypto Regulations

Taiwan used to be quite relaxed about cryptocurrency rules, mainly making sure people weren’t using it for illegal money activities. In September 2022, they gave licenses to 24 cryptocurrency companies to help stop money laundering.

But, after the problems with FTX, things changed. FTX offered high interest rates to people who put their US dollars in, but then it went out of business. Many people in Taiwan used FTX, so regulators started getting more active about making rules.

Even though China stopped cryptocurrency mining and trading, Taiwan’s Crypto Association is now working with regulators to make sure there are good rules to control and manage the cryptocurrency industry.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

#CryptoNews #cryptomarket #Taiwan #ElSalvador #CryptoRegulation

The Financial Supervisory Commission (FSC) plans to introduce new regulations for digital assets in Taiwan by September 2024.
Cryptos Headlines Token Airdrop Is Live, Claim Instant 5000 CHT Tokens Worth Of $50 Free On CryptosHeadlinesToken.com

The proposed draft bill aims to improve regulations in digital asset markets and ensure the safety of investors. Huang Tien-mu, the chairman of the FSC, provided this information in a news report by UDN on March 4.

Strengthening Regulations for Digital Assets in Taiwan
In a recent speech, Huang highlighted the potential fraud risks associated with digital currencies and warned of strict penalties for merchants engaging in fraudulent activities. He emphasized the increasing interconnection between digital assets and the traditional financial system, underscoring the need to protect the stability of the legacy financial system from the risks posed by digital assets.
To address these concerns, Taiwanese legislators introduced the Virtual Asset Management Bill to the unicameral parliament on Oct. 25. The bill aims to enhance customer protection and supervise the industry more effectively. Additionally, it proposes imposing fines ranging from two million to 20 million Taiwanese dollars (approximately $60,000 to $600,000) on unlicensed virtual asset service providers (VASPs).
Taiwan’s Regulatory Developments in Cryptocurrency
The Chamber of Commerce in Taiwan is set to release a study on Bitcoin exchange-traded funds (ETFs) in April, as announced by Gao Jingping, the deputy director of the Warranty Bureau. The study aims to provide insights into the implications of Bitcoin ETFs for the market.
Huang Tien-mu, chairman of Taiwan’s Financial Supervisory Commission (FSC), mentioned that Taiwan is contemplating the acceptance of spot Bitcoin ETFs within its regulatory framework. However, he advised caution to investors regarding foreign crypto-based exchange-traded products, highlighting potential risks.

Cryptos Headlines Token Airdrop Is Live, Claim Instant 5000 CHT Tokens Worth Of $50 Free On CryptosHeadlinesToken.com

The FSC has implemented regulations prohibiting foreign Virtual Asset Service Providers (VASPs) from operating in Taiwan without obtaining approval from the regulator. These rules were established following the formation of a self-regulatory association by major cryptocurrency exchanges in the country on Sept. 26, 2023. Exchanges such as BitstreetX, Hoya Bit, Bitgin, Rybit, Xrex, and Shangbito united to support the crypto industry and collaborate with regulators.
Also Read:   German VC Firm CEO Predicts Ripple’s XRP Will Become Global Currency
Moreover, Taiwan’s FSC granted the country’s inaugural security token offering license to Cathay Securities on Nov. 9, 2023. This license allows Cathay Securities to issue tokenized green bonds worth $930,000 every six months. This move represents Taiwan’s commitment to fostering innovation in the cryptocurrency sector while ensuring regulatory compliance and investor protection.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

Cryptos Headlines Token Airdrop Is Live, Claim Instant 5000 CHT Tokens Worth Of $50 Free On CryptosHeadlinesToken.com

#Taiwan #Bitcoin #Altcoin #Cryptocurrency #CryptoNews

CryptosHeadlines.com - The Leading Crypto Research Network

Taiwan’s financial watchdog is in the process of drafting ten guiding principles for virtual asset service providers, set to be released by the end of this month. These principles will explicitly state that offshore crypto exchanges must comply with proper registration to operate within Taiwan.

The Financial Supervisory Commission (FSC) of Taiwan aims to restrict offshore crypto exchanges from conducting onshore operations without appropriate compliance registration, as part of its upcoming guidelines for crypto firms.

These guidelines will encourage virtual asset service providers to establish their own self-regulatory rules. They are expected to emphasize the importance of information disclosure, the establishment of standards for listing and delisting virtual assets, and the secure separation and custody of both company and customer assets.

One significant restriction outlined in the principles will be a strict prohibition on illegal solicitation of business by foreign crypto firms. The FSC plans to specify that foreign virtual asset service providers must register in compliance with company law and declare their adherence to anti-money laundering regulations to operate within Taiwan or engage with domestic residents.

Binance Pursuing AML Compliance Registration

Taiwan has required virtual asset service providers (VASPs) to adhere to anti-money laundering laws since the Financial Supervisory Commission (FSC) introduced these regulations in July 2021. However, the broader crypto industry in the country has remained largely unregulated.

Last month, it was reported that Binance, the world’s largest crypto exchange, is in the process of seeking registration in Taiwan to comply with anti-money laundering requirements. While Binance is not officially regulated in Taiwan, it has established a local entity called “Binance International Limited Taiwan Branch (Seychelles),” as recorded in the Department of Commerce’s database. The registration was approved by the government on May 12, 2023, with a registered capital of NT$30 million ($937,000) in Taiwan.

Additionally, the Ministry of Economic Affairs announced last month its proposal to introduce a new business category in relevant regulations, potentially allowing cryptocurrency-related companies to form industry associations. This initiative aims to promote the development of self-regulatory guidelines within the crypto sector.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

#Blockchain #Bitcoin #CryptoNews #cryptomarket #Taiwan

CryptosHeadlines.com - The Leading Crypto Research Network

Today, Taiwan’s Financial Supervisory Commission has released important guidelines for crypto platforms. This move signals a stronger push for regulatory oversight in the cryptocurrency industry.Taiwan’s financial watchdog has unveiled guidelines aimed at safeguarding customers in the virtual asset services provider (VASP) industry.
These guidelines require local crypto platforms to keep company and customer assets separate, set criteria for adding or removing virtual assets, and improve transparency in information sharing, according to the Financial Supervisory Commission.
Furthermore, the new rules state that offshore exchanges wanting to operate in Taiwan must register with the FSC.
The guidelines state that foreign virtual asset platform operators who haven’t registered under company laws and haven’t confirmed their compliance with anti-money laundering rules to the FSC are not allowed to seek business in Taiwan or target Taiwanese citizens.
The FSC also made it clear that crypto platforms can’t be involved in activities related to financial products based on virtual assets or virtual asset businesses resembling securities.
It’s worth noting that Taiwan has been enforcing anti-money laundering regulations for virtual asset service providers (VASPs) since July 2021.
Self-Regulation
After the Financial Supervisory Commission (FSC) released its guidelines, crypto platforms in Taiwan are planning to create an industry association and develop self-regulatory rules aligned with these guidelines.
Presently, nine crypto exchanges in Taiwan have formed a working group to prepare for the formation of this crypto industry association. Their goal is to submit an association application by mid-October.
This working group comprises nine companies, including major Taiwanese exchanges like MaiCoin, BitoGroup, and ACE. Winston Hsiao, the co-founder and Group Chief Risk Officer of XREX, is leading the working group, as mentioned in the statement.Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
#Blockchain #CryptoMarket #Bitcoin #CryptoNews #Taiwan