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.