In September 2024, Taiwan took a major step toward regulating cryptocurrencies by introducing a new bill aimed at protecting investors and strengthening oversight of the digital asset market. Taiwan's Financial Supervisory Commission (FSC) announced a project that should improve transparency and security in the digital currency ecosystem.
Main provisions of the new law
1. Regulation of cryptocurrency service providers: All virtual asset service providers (VASPs) will be required to obtain licenses to operate in Taiwan. This will help protect users and reduce the risk of fraud.
2. Tough Penalties for Violating Rules: The law provides for severe fines for operators who fail to comply with the established regulatory requirements. Fines can reach up to $600,000, which motivates compliance.
3. Protecting the Traditional Financial System: The bill aims to prevent threats that digital assets may pose to the traditional financial system and strengthens the boundaries between these sectors.
Impact on the crypto market
The introduction of these measures could make the cryptocurrency market in Taiwan more attractive to institutional investors and large companies. Stricter regulations will help create a stable foundation for the sector to grow and develop further. The possibility of launching cryptocurrency ETFs is also being considered, which will allow investors to access crypto assets through more familiar financial instruments.
Taiwan aims to remain at the forefront of blockchain and cryptocurrency development, and these measures are another step towards that.
Think about the opportunities that these new rules open up for the Taiwan market. The regulation makes it safer and more attractive for investors.
