The Financial Supervisory Commission (FSC) in #Taiwan is set to become the regulator for cryptocurrency with the introduction of special legislation. Huang Tien-mu, the head of the FSC, confirmed this during a hearing about global banking stability.

The industry is welcoming the news as it believes that regulation will help it to grow. Wayne Huang, CEO of XREX, said that the next step would be for the virtual asset service provider industry to work with the #FSC to define regulatory operations.

One of the first steps in this collaboration is to form an industry self-regulatory body to help develop a set of rules. However, the FSC won't be regulating non-fungible tokens (NFTs) as they are still emerging as an asset class, and it's too early to regulate them. Taiwan has two financial regulators, the Central #Bank and the FSC, with the latter having a broad remit over banking regulation, securities and futures, and anti-money laundering.

Taiwan has historically taken a hands-off approach to #cryptocurrency regulation, only regulating the asset class under the framework of controlling money laundering. However, the collapse of FTX, a popular cryptocurrency exchange, added a sense of urgency to Taiwan's regulatory push.

Authorities approved 24 crypto platforms under the island's AML compliance system last September. The introduction of the new legislation is expected to strike a balance between experimentation and investor protection.

An initial framework for the law is expected by June, with an initial draft for later this year.

Taiwan Mobile, the second-largest telecom operator in Taiwan, has entered the digital asset market, becoming the country’s 26th virtual asset service provider (VASP).
This move positions the company, valued at 431.90 billion TWD, to potentially launch its cryptocurrency exchange, indicating a significant integration of digital assets into mainstream services.

Taiwan Mobile Enters Crypto Market as 26th VASP in Taiwan
Taiwan Mobile’s entry into the cryptocurrency space represents a significant development in Taiwan’s financial landscape. As of July 5, according to the latest details on the Financial Supervisory Commission (FSC) website, Taiwan Mobile has officially become the 26th virtual asset service provider (VASP) in the country.
The application process was led by Zhichen Lin, the general manager of Taiwan Mobile, which positions the telecom giant to join the VASP Association. Looking ahead, the integration of Taiwan Mobile with cryptocurrency exchanges is expected to create various new application scenarios for digital assets.
This move aligns with Taiwan Mobile’s broader strategy to incorporate digital assets into its services, showcasing a forward-thinking approach in a rapidly evolving market.
Taiwan Mobile Explores Crypto Partnerships and Exchange Launch
Local media reports reveal that Taiwan Mobile is actively exploring opportunities to collaborate with local crypto platforms. This includes potential investments in cryptocurrency businesses, underscoring the company’s commitment to expanding its presence in the digital asset sector.
With this recent development, Taiwan Mobile is positioned to potentially launch its own cryptocurrency exchange in the country, addressing the growing demand for digital currencies. The company’s entry into the crypto exchange space could lead to innovative applications of cryptocurrency, leveraging its existing customer base and technological infrastructure.
This strategic move could establish Taiwan Mobile as a significant player in the crypto market and potentially set a precedent for other telecom operators in the region.
Taiwan’s Crypto Sector Resurgence and Regulatory Developments
Taiwan’s cryptocurrency sector is experiencing a resurgence, fueled by recent regulatory advancements. In June, Taiwan established the Taiwan Virtual Asset Service Provider Association to regulate the crypto industry, enhance oversight, combat fraud, and ensure compliance with anti-money laundering (AML) laws.
This association will create guidelines for classifying and managing virtual asset service providers, offering a structured framework for the industry’s development. Additionally, the Financial Supervisory Commission (FSC) is preparing to submit a revised draft of digital asset regulations in September. The regulator is closely monitoring Bitcoin ETFs to gauge public interest and readiness.
The FSC’s potential approval for Taiwanese investors to purchase overseas Bitcoin ETFs signals a willingness to embrace crypto innovations while maintaining regulatory safeguards.
Taiwan Mobile’s Strategic Move Into the VASP Space and Its Impact
Taiwan Mobile’s entry into the virtual asset service provider (VASP) space represents more than just a corporate strategy; it marks a significant step toward mainstream adoption of digital assets in Taiwan. As the second-largest telecom operator in the country, Taiwan Mobile’s involvement in the crypto market could drive broader acceptance and use of digital currencies among the general public.
This move could also encourage other major corporations to explore similar ventures, potentially accelerating the integration of digital assets into everyday financial activities. With its substantial market presence and technological expertise, Taiwan Mobile is well-positioned to navigate the complexities of the crypto market and deliver innovative solutions to its customers.
Integrating crypto services into its telecom offerings could enhance the user experience and provide a smooth transition for those entering the digital asset space. Becoming the 26th VASP in Taiwan is a notable milestone for the company, reflecting its commitment to innovation and positioning it at the forefront of digital asset integration in mainstream services.
As Taiwan continues to develop its regulatory framework for the crypto sector, Taiwan Mobile’s entry into this space could drive wider acceptance and usage of digital currencies, heralding a new era of financial services in the country.

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.

#Taiwan #Bitcoin #Memecoins #MtGox #SAB121 $BTC $ETH $XRP

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

Taiwan has expressed concerns about its anticipated CBDC launch, indicating that users might need to wait longer. Despite the delay, Taiwan believes that a digital currency would be a game-changer in payments.
Taiwan’s central bank announced on Sunday that it doesn’t have a set “timetable” for launching a digital currency (CBDC). The bank has been developing a pilot program for a government-run digital currency over the past four years, aimed at allowing users to make electronic payments through digital wallets without needing a credit or debit card.
Taiwan Central Bank Delays Digital Currency Launch
On July 7, Reuters reported that Taiwan’s central bank has no specific schedule for launching a central bank digital currency (CBDC), describing the process as “huge and complex.” To address this, the bank plans to hold public hearings next year to educate the public about the initiative.
“The promotion of central bank digital currency is a huge and complex project that will need to be carried out for a long time,” the report quoted the central bank. “Given the currency’s launch will affect many people it is necessary to widely communicate about it, and public hearings and forums will happen next year to promote knowledge of the currency.”
While the development appears to indefinitely delay the CBDC plan, the central bank acknowledged that ongoing research and experimentation have shown digital currency can improve the processing efficiency and innovative applications of Taiwan’s payment system.
This announcement comes as central bank Governor Yang Chin-long is scheduled to answer lawmakers’ questions on the matter on Monday.

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.

#Taiwan #China #Germany #MtGox #SAB121 $BTC $USDC $XRP

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

The Financial Supervisory Commission (FSC) plans to introduce new regulations for digital assets in Taiwan by September 2024.
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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.

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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.

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