Taiwan to Introduce First Crypto Regulatory Bill in November 2023
Legislators in Taiwan are planning to present the country’s first crypto regulatory bill in November 2023, according to an exclusive interview with Parliament member Yung-Chang Chiang. Chiang emphasized the need for a special law to guide cryptocurrency trading and other activities in the country, highlighting the differences between cryptocurrencies and traditional financial investment services. He believes that tailored and industry-specific guidelines are necessary to protect investors and prevent regulatory arbitrage.
Efforts to Create a Special Crypto Law
Chiang has been actively working towards the goal of introducing a special crypto law despite the limited time frame. In a public hearing on October 6, he met with industry experts and service providers to discuss the upcoming draft bill. The proposed provisions by the Financial Supervisory Commission (FSC) regarding how cryptocurrencies should be interacted with were also discussed.
FSC Guidelines for Crypto Exchanges
The FSC issued guidelines stating that domestic crypto trading platforms must separate customers’ funds from the exchange’s treasury to prevent fraud. The guidelines also require exchanges to review listing and delisting standards for virtual assets and ensure easy access to information for investors and government agencies. Foreign offshore platforms must complete registration before operating within the country, and both domestic and foreign exchanges must not operate without necessary approvals.
The Need for a Special Law
Chiang believes that the current approach lacks legal enforceability. He stated that without a special crypto law, regulators would lack the ability to impose penalties on operators who violate self-regulation rules. The proposed special law will cover this gap and provide regulatory authorities with the power to impose administrative penalties on non-compliant operators.
Industry Association Formation
Nine crypto exchanges, including MaiCoin, BitoGroup, and ACE, are working towards creating a crypto industry association to advocate for the interests of the nascent industry. They plan to apply for official recognition by mid-October.
Hot Take: Taiwan Takes Steps Towards Crypto Regulation
Taiwan is making progress in establishing its first crypto regulatory framework. The introduction of a special crypto law will provide clear guidelines for cryptocurrency trading and protect investors from potential risks. By addressing the unique characteristics of cryptocurrencies and preventing regulatory arbitrage, Taiwan aims to create a secure and thriving crypto industry. The efforts to form a crypto industry association further demonstrate the commitment to fostering growth and collaboration within the sector. With these developments, Taiwan is positioning itself as a forward-thinking jurisdiction in the global crypto landscape.
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