The cryptocurrency group in Taiwan has asked El Salvador for help in making better rules for cryptocurrencies.
The Taiwan Crypto Association talked to officials in El Salvador, like the Virtual Assets Bureau, Presidential Office, and central bank. They asked for help in making better rules for cryptocurrencies.
Right now, Taiwan’s rules don’t allow trading cryptocurrency derivatives or creating stablecoins like Bitcoin. They want to make new laws to support the cryptocurrency market. El Salvador is one of the few countries that like cryptocurrencies; they even made Bitcoin a legal way to pay for things in September 2021.
Taiwan’s approach to cryptocurrency regulations
During a public meeting about watching over digital money in Taiwan, they talked a lot about cryptocurrencies. They thought about letting people do more complicated types of trading with cryptocurrencies and making a special office for financial technology. People from big crypto places like Bitfinex and Binance were there too.
Taiwan wants to make a special office called the Virtual Assets Bureau to make sure people who use cryptocurrencies are safe and that trading digital money follows the rules. They also plan to make rules for companies that provide cryptocurrency services, and these rules should be ready by September 2023.
The Financial Supervisory Commission will be in charge of making sure cryptocurrencies are used correctly, that no one is doing illegal money stuff, and that crypto companies follow the rules.
FTX Crisis Sparks Taiwan’s Drive for Crypto Regulations
Taiwan used to be quite relaxed about cryptocurrency rules, mainly making sure people weren’t using it for illegal money activities. In September 2022, they gave licenses to 24 cryptocurrency companies to help stop money laundering.
But, after the problems with FTX, things changed. FTX offered high interest rates to people who put their US dollars in, but then it went out of business. Many people in Taiwan used FTX, so regulators started getting more active about making rules.
Even though China stopped cryptocurrency mining and trading, Taiwan’s Crypto Association is now working with regulators to make sure there are good rules to control and manage the cryptocurrency industry.
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.
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