Industry Association Formed Ahead of Crypto Regulations in Taiwan
Nine crypto firms in Taiwan have joined forces to create an industry association as the country’s Financial Supervisory Commission (FSC) prepares to release its regulatory guidelines for cryptocurrencies. The forthcoming guidelines, inspired by Hong Kong’s VASP licensing framework, will focus on consumer protection and security measures for crypto exchanges. Proposed measures include defining hot and cold wallet ratios for deposits and mandatory insurance against potential user losses. The regulations also aim to restrict offshore exchanges and ban stablecoins pegged to the Taiwanese dollar. Additionally, the FSC is drafting an amendment to introduce a tailored category for digital asset services.
Promoting Self-Regulation in the Crypto Industry
Alongside the regulatory framework, the nine crypto firms leading the industry association have established a working group to develop self-regulatory rules aligned with the FSC’s guidelines. The goal is to foster transparency, legitimacy, and public trust within Taiwan’s crypto sector. Winston Hsiao, co-founder of XREX, is leading the working group and believes that the FSC’s guidelines will provide a solid foundation for industry growth. With clear directives and a collective vision, Taiwan’s crypto sector is entering a transformative phase.
Hot Take: A Milestone for Taiwan’s Crypto Sector
The formation of the industry association and the imminent release of regulatory guidelines by the FSC mark a significant milestone for Taiwan’s crypto sector. These developments demonstrate Taiwan’s commitment to consumer protection, security, and standardized practices within the industry. By promoting self-regulation and aligning with global trends, Taiwan is positioning itself as a leader in responsible cryptocurrency governance. With clear regulations in place, the future of Taiwan’s crypto sector looks promising, offering opportunities for growth and innovation while ensuring investor confidence and market stability.
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