Taiwan’s Financial Regulator Introduces New Guidelines for Crypto Exchanges
The Financial Supervisory Commission (FSC) of Taiwan has released new guidelines aimed at protecting cryptocurrency users in the country. These guidelines emphasize transparency, secure asset custody practices, and stronger internal controls within crypto firms.
The FSC’s regulations require cryptocurrency exchanges operating in Taiwan to separate and protect company treasury assets from customer assets. They also establish a new review standard for listing and delisting digital assets, while enhancing information disclosure.
Foreign cryptocurrency firms that wish to operate in Taiwan or serve Taiwanese customers must register with the FSC and comply with anti-money laundering regulations. The FSC stated that overseas virtual asset platforms are not allowed to conduct business in Taiwan without proper registration.
Taiwan Cryptocurrency Exchanges Collaborate on Self-Regulation
In response to the FSC’s guidelines, major cryptocurrency exchanges in Taiwan have formed a self-regulatory association. This collaborative effort involves nine local exchanges working together to define self-regulatory norms aligned with the FSC’s principles.
The Virtual Asset Platform and Transaction Business Association, consisting of exchanges like Maicoin, BitstreetX, Hoya Bit, and others, aims to finalize and submit these norms by mid-October.
Wayne Huang, co-founder and Group CEO of XREX exchange, believes that the FSC’s guidelines will provide legitimacy and oversight to the industry, allowing for accelerated growth and public trust.
FSC Draws Inspiration from Global Crypto Regulations
The FSC’s new crypto regulations draw inspiration from frameworks in the European Union, Japan, and South Korea. The aim is to impose restrictions on unregistered cryptocurrency exchanges.
Binance, the world’s largest crypto exchange, has submitted a registration application to the FSC for Anti-Money Laundering compliance. Other exchanges like Kraken and Bybit are also considering participation.
Hot Take: Taiwan Strengthens Crypto Regulation to Protect Users
Taiwan’s Financial Supervisory Commission has taken significant steps to enhance the protection of cryptocurrency users in the country. The newly released guidelines emphasize transparency, secure asset custody practices, and stronger internal controls within crypto firms.
In addition, major cryptocurrency exchanges in Taiwan have formed a self-regulatory association to align with the FSC’s guidelines and define industry norms. This collaborative effort aims to foster growth and public trust in the cryptocurrency industry.
By drawing inspiration from global crypto regulations and imposing restrictions on unregistered exchanges, Taiwan is positioning itself as a leader in crypto regulation. These measures are crucial for safeguarding users and ensuring the integrity of the cryptocurrency market in Taiwan.
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