Taiwan’s Crypto Sector Sets Up Industry Association
Taiwan’s cryptocurrency sector is taking steps to establish an industry association in collaboration with the country’s financial regulator. Nine crypto firms have announced their plans to apply for the establishment of the association by mid-October. They have also formed a working group to expedite the process. While virtual asset services providers (VASPs) in Taiwan are required to comply with anti-money laundering laws, the industry largely remains unregulated. However, the Financial Supervisory Commission (FSC) is expected to release guidelines on trading and payments related to cryptocurrencies for VASPs by the end of this month. The establishment of an industry association aims to develop self-supervisory rules based on these guidelines.
Industry Association and Working Group
The working group, comprising nine firms including major exchanges such as MaiCoin, BitoGroup, and ACE, plans to cover various types of crypto firms once the association is established. These include over-the-counter trading platforms, wealth investment platforms, custody service providers, and quantitative trading companies. The convener of the working group is Winston Hsiao, co-founder and Group CRO of XREX, a Taipei-based crypto exchange.
Anticipated Guidelines and Their Impact
The upcoming guidelines from the FSC are expected to provide legitimacy, oversight, and a clear growth path for the crypto industry in Taiwan. Wayne Huang, co-founder and Group CEO of XREX, believes that these guidelines will contribute to building public trust in the industry. The guidelines may also restrict offshore crypto exchanges from operating without proper compliance registration in Taiwan.
Hot Take: Establishing an Industry Association for Crypto Firms in Taiwan
The cryptocurrency sector in Taiwan is taking proactive steps by setting up an industry association in collaboration with the financial regulator. By applying for the establishment of the association, crypto firms aim to develop self-supervisory rules based on forthcoming guidelines from the Financial Supervisory Commission (FSC). This move will provide legitimacy, oversight, and a clear growth path for the industry. It will also enhance public trust in cryptocurrencies. The working group, consisting of major exchanges and other crypto firms, is actively working towards expanding the association’s coverage to include various types of crypto businesses. Overall, this initiative marks an important milestone in Taiwan’s efforts to regulate and foster the growth of its cryptocurrency sector.
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