Taiwan Introduces Guidelines for Crypto Firms
The Financial Supervisory Commission (FSC) of Taiwan has issued a new set of guidelines specifically tailored for cryptocurrency-related businesses. This move brings the country one step closer to achieving regulatory clarity in its crypto industry. The guidelines, known as the “Guiding Principles for the Management of Virtual Asset Platforms and Transaction Businesses (VASP),” focus on customer protection, transaction transparency, custody methods, internal control management, and more.
Restrictions on Offshore Virtual Asset Platforms
The FSC’s guidelines also address the operation of overseas virtual asset platforms in Taiwan. According to the regulations, offshore crypto platforms are prohibited from soliciting business or targeting Taiwanese nationals unless they have registered under company laws and complied with anti-money laundering (AML) regulations. This framework comes after the introduction of rules against money laundering in 2021, which mandated compliance for all digital asset platforms in Taiwan.
Crypto Firms Form Industry Association
The FSC guidelines encourage VASP operators in Taiwan to establish associations that foster self-discipline and formulate self-supervisory statutes based on the guiding principles. In line with this, nine major Taiwanese exchanges, including MaiCoin Group and BitoGroup, have formed a preparatory group for an industry association. They plan to submit an application for the association in mid-October. The establishment of this association aims to promote the growth and development of Taiwan’s domestic virtual currency industry.
Hot Take: Taiwan Takes Steps Towards Regulatory Clarity in Crypto Industry
Taiwan’s Financial Supervisory Commission has released guiding principles specifically designed for crypto-related firms and businesses. These guidelines emphasize customer protection and transparency while addressing offshore virtual asset platforms’ operations in Taiwan. Additionally, nine major Taiwanese exchanges have formed a preparatory group to establish an industry association, aligning with the FSC’s guidelines. This association aims to foster self-discipline and promote the growth of Taiwan’s virtual currency industry. With these developments, Taiwan moves closer to achieving regulatory clarity and ensuring a more secure and transparent crypto landscape.
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