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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.