In a major leap towards the self-regulation of Taiwan’s cryptocurrency industry, the Taiwan Virtual Asset Service Provider Association has been formally established, with an inaugural meeting held on Thursday, setting the stage for its role as a bridge between the private sector and government oversight in the crypto space.
We celebrate this momentous day with all virtual asset service providers in #Taiwan as an official industry association is formed.This marks an important milestone in an ongoing process towards a consultative and unique regulatory model for the #VASP industry in Taiwan. (1/4) pic.twitter.com/thzW3htCy2
— XREX Inc. (@xrexinc) June 13, 2024
This initiative, approved by Taiwan’s Ministry of the Interior and confirmed by a blog post by the blockchain firm XREX, marks a significant step towards formalizing the crypto landscape in the country.
The association brings together 24 cryptocurrency-related entities—representing various crypto-related businesses, including exchanges, peer-to-peer trading platforms, and wallet hosting companies—marking a crucial step toward self-regulation and industry collaboration.
Key Objectives and Responsibilities
The Taiwan Virtual Asset Service Provider Association’s primary mission is to foster cooperation between industry players and regulatory bodies.
The Association will develop a comprehensive self-regulation code covering critical aspects of the crypto industry. These include industry classification, listing and delisting procedures, consumer protection measures, risk management, transaction monitoring, and advertising guidelines.
By acting as a liaison between the private sector and government, the Association seeks to enhance industry supervision. Its collaborative approach aims to strike a balance between innovation and investor protection.
Additionally, the Association is tasked with developing guidelines that align with international standards, focusing on areas such as anti-money laundering (AML) measures, security protocols, and investor protection. The organization will also serve as a bridge between the crypto industry and government regulators, advocating for policies that support innovation while safeguarding against illicit activities.
Leadership and Vision
Chairperson: Titan Cheng, founder and CEO of BitoPro, will lead TVASPA. His experience in the crypto sector positions him well to guide the association’s efforts.
Vice Chair: Winston Hsiao, Chief Revenue Officer at XREX, will support Cheng in steering TVASPA toward its goals.
The groundwork for the Virtual Asset Service Provider Association was laid by nine founding members in the previous year, with government approval in 2024. The association’s formation coincides with ongoing proactive efforts by Taiwan’s Financial Supervisory Commission (FSC) to set guidelines aimed at customer protection and industry oversight. These guidelines, released in September 2023, emphasize the need for enhanced customer protection measures and set the groundwork for the industry’s self-regulation.
The director of the securities firms division at the FSC, Hsiho Huang, said at the launch meeting on Thursday,
“The FSC places great importance on the development of the virtual asset industry. We believe that the healthy development of this industry is closely related to the development of society and the economy.”
Taiwan’s crypto landscape has evolved significantly. Previously adopting a hands-off approach, the government now recognizes the need for regulation. The FTX scandal prompted a shift, leading to the introduction of legislation aimed at safeguarding investors and promoting responsible industry practices.
XREX Inc., a blockchain firm, celebrated the association’s formation, emphasizing its importance in shaping a consultative and unique regulatory model for Taiwan’s virtual asset service providers. The crypto community eagerly awaits the Association’s initiatives and anticipates positive impacts on the industry.
The Taiwan Virtual Asset Service Provider Association’s establishment signifies a pivotal moment for the country’s crypto ecosystem. With collaboration at its core, TVASPA aims to foster responsible growth while ensuring investor confidence in this dynamic sector.
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