Taiwan Proposes New Business Category for Cryptocurrency Companies

Taiwan Proposes New Business Category to Foster Self-Regulation in Crypto Industry

The Ministry of Economic Affairs in Taiwan has proposed adding a new business category to regulations in order to enable cryptocurrency-related companies to establish industry associations. This move aims to foster the development of self-regulatory guidelines within the crypto sector. The proposed business category outlines the scope of operations within the cryptocurrency industry, including activities such as exchanging cryptocurrency, facilitating transfers, providing storage or management services, and assisting with cryptocurrency issuance or sales. Once the category is added to relevant regulations, crypto firms can form industry associations and create self-supervisory rules.

Main breakdowns:
1. Taiwan’s Ministry of Economic Affairs is drafting an amendment to add a business category for digital asset services in regulations.
2. The proposed category covers various activities within the cryptocurrency sector.
3. Crypto firms can establish industry associations once the business category is added to regulations.
4. Taiwan has required virtual asset service providers to comply with anti-money laundering laws since July 2021.
5. Taiwan’s Financial Supervisory Commission is formulating broader guidelines for trading and payments related to cryptocurrencies.

Hot Take

Taiwan’s move to propose a new business category for cryptocurrency-related companies is a positive step towards fostering self-regulation in the crypto industry. By allowing crypto firms to form industry associations, the country is promoting the development of self-supervisory rules. This approach recognizes the need for guidelines and compliance within the sector while still allowing for innovation and growth. With upcoming guidelines from the Financial Supervisory Commission, Taiwan is positioning itself as a proactive regulator in the crypto space. This development could potentially attract more crypto companies to establish a presence in Taiwan, further boosting the country’s position in the global crypto market.