Taiwan has taken an important step in regulating the cryptocurrency sector by creating a new industry association. This move supports the government’s goal of increasing oversight and self-regulation in the industry.
The Taiwan Virtual Asset Service Providers Association, established today with the guidance of the Financial Supervisory Commission (FSC), marks a significant milestone in the country’s cryptocurrency regulation efforts.
Taiwan Establishes New Industry Association to Regulate Cryptocurrency Sector
The newly formed association includes 24 cryptocurrency companies, all registered with the Financial Supervisory Commission (FSC) for anti-money laundering (AML) compliance. This mandatory registration for cryptocurrency companies operating in Taiwan underscores the government’s dedication to preventing criminal activities in the cryptocurrency space. The association is chaired by Titan Cheng, founder and CEO of Taiwan’s leading cryptocurrency exchange BitoPro, with Winston Hsiao, co-founder and chief revenue officer of XREX, serving as vice-chairman.
The creation of this association is a critical step for Taiwan to enhance oversight of cryptocurrency trading companies. The government has assigned the association the task of developing self-regulation rules for its member companies. This self-regulation is expected to uphold the sector’s integrity and meet government expectations.
Hsiho Huang, director of the securities firms division at the FSC, highlighted the importance of the virtual asset industry’s development for society and the economy. At the launch meeting, Huang emphasized the FSC’s commitment to fostering a healthy cryptocurrency ecosystem that benefits both the sector and the public.
Taiwan’s New Cryptocurrency Association to Implement Self-Regulating Guidelines
The newly established cryptocurrency association in Taiwan is set to create self-regulating guidelines for Virtual Asset Service Providers (VASPs). These guidelines will focus on classification and rating management, ensuring the sector’s growth aligns with regulatory standards while safeguarding consumer rights and interests.
Since July 2021, Taiwan has enforced anti-money laundering (AML) requirements for cryptocurrency service providers. The Financial Supervisory Commission (FSC) initially implemented these rules to mitigate financial risks associated with digital assets. Despite these measures, the broader cryptocurrency industry in Taiwan remains largely unregulated.
Regulatory content FSC. Source: law.fsc.gov.tw
In a move to further tighten regulation, the Taiwan Ministry of Justice proposed amendments to existing AML laws last month. These amendments mandate that both domestic and foreign cryptocurrency companies must register for AML compliance to operate in Taiwan. Non-compliance could result in severe penalties, including imprisonment for up to two years.
Important:Â 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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