New Regulation for Crypto Exchanges in Taiwan: The Details
Taiwan’s Financial Supervisory Commission (FSC) has released long-awaited guidelines for crypto platforms, emphasizing the importance of consumer protection. The new guidelines require domestic crypto platforms to engage in segregation and custody of both corporate and customer assets. They also establish review standards for the pricing and removal of virtual assets and emphasize the need for transparency of information. Additionally, offshore platforms wishing to operate in Taiwan must register with the FSC. Foreign virtual asset platform operators that are not registered and have not declared compliance with anti-money laundering regulations are not allowed to do business in Taiwan or target Taiwanese citizens.
Taiwan’s Crypto Platforms Consider the Creation of an Industry Association
In response to the new guidelines, Taiwan’s crypto platforms are considering establishing an industry association and developing self-regulatory rules based on these guidelines. A working group consisting of nine companies, including major Taiwanese platforms such as MaiCoin, BitoGroup, and ACE, has been formed to prepare an application for creating a crypto industry association. Wayne Huang, CEO of XREX, commented that these guidelines could provide legitimacy, oversight, and a solid foundation for growth in the sector.
Binance’s Application for Registration Under the AML Act
The FSC has notified domestic cryptographic service providers that Binance has begun the registration process to adhere to anti-money laundering (AML) regulations. Taiwan requires virtual asset service providers to comply with local AML laws since July 2021. While there was initial uncertainty about whether Binance had officially submitted registration documentation, offshore crypto platforms operating in Taiwan are encouraged to comply with local AML regulations. Binance has established a local presence named “Binance International Limited Taiwan Branch (Seychelles)” in Taiwan.
Hot Take: Taiwan Strengthens Crypto Regulation with New Guidelines
Taiwan’s Financial Supervisory Commission has taken a significant step towards industry oversight by releasing guidelines for crypto platforms. The guidelines prioritize consumer protection and require domestic platforms to segregate and custody assets, establish review standards, and improve transparency. Offshore platforms must register with the FSC to operate in Taiwan. In response, Taiwan’s crypto platforms are considering forming an industry association to develop self-regulatory rules. Binance has also started the registration process to comply with AML regulations. These developments provide legitimacy and trust in the sector, laying a solid foundation for growth. Taiwan’s proactive approach to regulation sets an example for other countries.
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