Taiwan Proposes Special Law to Regulate Digital Assets
Taiwan is taking steps to establish a regulatory framework for digital assets by proposing a special law. Under this law, all cryptocurrency platforms in Taiwan will be required to apply for a license. The draft of the Crypto Act has already passed its first reading in Taiwan’s parliament, the Legislative Yuan.
Lawmakers Call for Collaboration with Financial Supervisory Commission
The first reading of the bill has sparked discussions on the regulatory framework for the digital assets industry. Yung-Change Chiang, a member of parliament and contributor to the proposed Special Act, has called on Taiwan’s Financial Supervisory Commission (FSC) to submit their version of a draft crypto bill. This would ensure that various sectors are aligned during the legislative process.
In September, the FSC released guidelines for self-supervision in the crypto industry, including measures to protect consumers and establish standards for asset listings and delistings on trading platforms.
Concerns Over Regulatory Measures
The FSC plans to enforce these guidelines through an industry association, but Chiang believes such measures are legally unenforceable. He argues that a special law is necessary to give regulatory authorities the power to impose penalties on operators who violate self-regulation rules.
Details of the Proposed Special Crypto Law
The special crypto act is a collaborative effort by Chiang and 16 other lawmakers. It will require all digital asset platforms in Taiwan to obtain operational permits or face penalties, including cease and desist orders. The second reading of the bill may take place before January 2024, when the tenure for current Taiwanese lawmakers ends.
Prior to these developments, Taiwan had introduced anti-money laundering regulations for virtual asset service providers. The recent moves by lawmakers aim to further regulate the Taiwanese crypto industry.
Hot Take: Taiwan Takes Steps to Regulate Digital Assets
Taiwan is making significant progress in establishing a regulatory framework for digital assets. The proposed special law aims to ensure that cryptocurrency platforms in Taiwan operate under a licensed and regulated environment. This move is a response to the ongoing global regulatory revolution in the crypto space.
By requiring operational permits and enforcing guidelines for self-supervision, Taiwan aims to protect consumers, prevent money laundering, and establish standards for asset listings and delistings. However, there are concerns about the enforceability of regulatory measures without a special law.
The collaboration between lawmakers and the Financial Supervisory Commission will be crucial in shaping the future of digital asset regulation in Taiwan. With the second reading of the bill expected before January 2024, Taiwan is taking proactive steps towards ensuring a transparent and compliant crypto industry.
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