Taiwan Sees Interest in Virtual Currency Market
Taiwan’s Financial Supervisory Commission (FSC) has announced that 52 virtual currency operators are interested in entering the Taiwanese financial market. While some of these operators have completed the necessary legal documents for preventing money laundering, others have yet to do so. The FSC made this disclosure during a public hearing conducted by legislator Guo Guow. The regulator also plans to release the first virtual asset management guiding principles in September.
Possible Virtual Asset-Specific Laws
Authorities in Taiwan have not ruled out the possibility of implementing laws specifically for virtual assets. However, until those laws are in place, virtual assets will be regulated under the Money Laundering Prevention Act. Operators who fail to comply with anti-money laundering laws could face fines ranging from $69,000 to $1.38 million.
Protecting Virtual Asset Users
Under the current guidelines, virtual asset investors cannot file complaints against operators with the Financial Review Center. However, the FSC is committed to protecting users through other means, such as requiring operators to separate their assets from users’ funds. Huang Houming, deputy director of the Securities and Futures Bureau, stated that after the guiding principles are released, operators will be encouraged to establish associations and self-regulate.
Hot Take: Taiwan Embracing Virtual Assets
Taiwan is seeing a growing interest in the virtual currency market, with 52 operators looking to enter the financial market. The government is taking steps to regulate this sector and prevent money laundering. While virtual asset-specific laws are being considered, the current focus is on applying existing anti-money laundering regulations. However, the authorities are determined to protect virtual asset users and are exploring alternative methods to do so. The release of virtual asset management guiding principles will provide further clarity. Taiwan is positioning itself as an attractive destination for virtual currency operators, encouraging self-regulation and the establishment of industry associations.
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