Taiwan Considers Special Act to Regulate Cryptocurrency Industry
Taiwan is exploring the possibility of implementing a special act to regulate the cryptocurrency industry, according to Tien-mu Huang, chair of the Financial Supervisory Commission (FSC). The FSC is expected to release the results of its research in September of this year. Huang emphasized the need for careful management of the relationship between traditional finance and cryptocurrencies, suggesting that a dedicated special law would be more suitable for overseeing the crypto sector.
Investor Protection as a Priority
The FSC is currently prioritizing investor protection in its efforts to regulate the cryptocurrency industry. To address relevant issues, a group of local crypto companies is preparing to establish a self-regulatory industry organization. This organization will serve as a platform for communication and collaboration among industry players.
Current Regulatory Landscape
At present, Taiwan requires cryptocurrency service providers to comply with anti-money laundering laws. In July 2021, the FSC introduced anti-money laundering rules that apply to virtual currency platforms and trading businesses. However, outside of these regulations, the crypto industry remains largely unregulated in Taiwan.
Past Developments
In September 2023, the FSC released guidelines encouraging the crypto sector to develop self-supervisory rules through a potential industry association. Additionally, some lawmakers proposed a draft special crypto act in October 2023, anticipating that the FSC would also present its version of a potential crypto act.
Hot Take: Taiwan Moves Towards Crypto Regulation
Taiwan is taking steps towards regulating its cryptocurrency industry by considering the implementation of a special act. This move comes as the Financial Supervisory Commission recognizes the need for careful management and oversight of cryptocurrencies in relation to traditional finance. With investor protection as a priority, the FSC is working towards establishing a self-regulatory industry organization to address relevant issues.
While Taiwan currently requires compliance with anti-money laundering laws, the crypto industry remains largely unregulated. However, the FSC’s upcoming research results, expected to be released in September, could pave the way for a dedicated special law to regulate the crypto sector.
The progress made by Taiwan in exploring crypto regulation reflects a growing trend worldwide. As cryptocurrencies gain prominence and attract more attention from investors and regulators, it becomes crucial to establish clear guidelines and frameworks for their operation. By taking proactive steps towards regulation, Taiwan aims to protect investors and promote responsible growth in its cryptocurrency industry.
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