Regulation
Taiwan forms an official cryptocurrency association to regulate its crypto industry
Taiwan has officially established a cryptocurrency industry association under the leadership of the government. This marks a proactive stance in regulating the cryptocurrency sector by creating a structured framework that promotes innovation while ensuring security.
The formation of the association reflects the government’s commitment to creating robust regulations that address the unique challenges and opportunities presented by cryptocurrencies. By bringing together industry stakeholders, Taiwan aims to promote a responsible digital asset economy and position itself as a crypto-friendly environment.
Establishment of the Crypto Industry Association
The one from Taiwan The cryptocurrency industry has formed a new self-regulatory association of 24 registered crypto companies. Led by BitoPro CEO Titan Cheng and XREX’s Winston Hsiao, the Taiwan Virtual Asset Service Provider Association aims to develop guidelines for classifying and managing virtual asset service providers. This step towards self-regulation is a priority as Taiwan has faced various criminal uprisings regarding the cryptocurrency industry, such as a recent fraud case involving 32 people from platforms such as Exchange of aces.
The Financial Supervision Commission believes that proper development of the cryptocurrency industry is crucial to Taiwan’s economy. The main task of the association is to formulate self-regulatory rules that balance industry interests with consumer protection to create a reliable environment that attracts national and global virtual asset participants.
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Current regulatory landscape and future directions
Taiwan is cracking down on irregularities in the industry with crypto regulations. In July 2021, new rules required cryptocurrency companies to comply anti-money laundering (AML) legislation. However, the majority of the cryptocurrency industry remains unregulated, prompting a new crypto association to establish self-regulatory frameworks.
Last month, proposed amendments would force domestic and foreign cryptocurrency firms in Taiwan to register for anti-money laundering compliance or face up to 2 years in prison, signaling the government’s tough stance against illicit financial activities.
In the meantime, Taiwan Financial Supervisory Commission (FSC) has been tracking Bitcoin ETFs throughout April to gauge public demand and preparedness. The FSC will soon release findings that could give the green light for Taiwanese investors to resume purchasing Bitcoin ETFs overseas, reflecting an openness to crypto innovations within appropriate regulatory guardrails.
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