Republic of China to Release Virtual Asset Guidelines This Month

Taiwan to Release Virtual Asset Service Provider Guidelines

Taiwan’s Financial Supervisory Commission (FSC) is set to announce the “Guiding Principles for the Management of Virtual Asset Platforms and Trading Businesses (VASP)” before the end of this month. These guidelines aim to effectively regulate crypto assets, prevent money laundering, and ensure compliance among crypto exchanges and firms.

Taiwan Takes Steps Towards Crypto Regulation

Despite the ban on crypto trading and mining in mainland China, Taiwan is moving forward with the release of guiding principles for crypto regulation. The FSC will focus on key aspects such as managing virtual asset issuance, overseeing listing and delisting procedures, and separating platform assets from customer assets. Companies will also be required to ensure fairness and transparency in transactions, strengthen contract formulation and complaint handling, and establish secure systems for continued operations and information security.

Taiwan’s Crypto Regulations Based on International Standards

In March 2023, Taiwan’s government designated the FSC as the competent authority for regulating crypto assets. The regulatory regime draws inspiration from regulations in countries like the European Union, Singapore, and Japan.

Crypto Industry Advocates for Friendly Regulation in Taiwan

Crypto companies, including exchanges, are urging for more crypto-friendly regulations in Taiwan. These companies are seeking clarity and guidance from regulators to support their operations in the country. The increase in crypto activity in Taiwan following China’s crackdown in 2021 has highlighted the need for clear and comprehensive regulations.

Hot Take: Taiwan Paves the Way for Crypto Regulation

Taiwan’s move to release guidelines for crypto regulation demonstrates its commitment to creating a supportive environment for the crypto industry. By establishing clear rules and ensuring compliance, Taiwan aims to foster innovation and protect investors in the rapidly evolving world of cryptocurrencies.