Taiwan Official: Offshore Crypto Exchanges Face Ban Unless Compliant

Taiwan Official: Offshore Crypto Exchanges Face Ban Unless Compliant


Taiwan to Restrict Offshore Cryptocurrency Exchanges Operating Onshore

Taiwan is planning to impose restrictions on offshore cryptocurrency exchanges that operate onshore without proper compliance registration. The country’s Financial Supervisory Commission (FSC) has drafted 10 guiding principles for virtual asset service providers (VASPs) to establish their own self-regulatory regulations. These principles intend to strengthen information disclosure, establish review standards for virtual asset listing and delisting, and secure the separation and custody of companies’ and customers’ assets. One key restriction is the strict prohibition of illegal business solicitation by foreign cryptocurrency corporations. The FSC will specify in the guiding principles that foreign VASPs must register according to company law and declare compliance with anti-money laundering regulations to operate within Taiwan or solicit domestic residents.

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Binance’s AML Compliance Registration in Taiwan

Taiwan has required VASPs to comply with anti-money laundering laws since July 2021, but the industry remains largely unregulated in the country. Binance, the world’s largest cryptocurrency exchange, is as of now applying for AML compliance registration in Taiwan. Despite the fact that Binance is not regulated in the country, it has established a local entity named “Binance International Limited Taiwan Branch (Seychelles).” The Government approved Binance’s company registration in Taiwan with a registered financial resources of NT$30 Million ($937,000). Additionally, the Ministry of Economic Affairs has proposed adding a new business category to enable cryptocurrency-related corporations to establish industry associations. This proposition intends to foster the development of self-regulatory guidelines in the cryptocurrency industry.

Hot Take: Taiwan’s Strides in Cryptocurrency Regulation and Self-Regulation

Taiwan is taking whole lot of steps to regulate the cryptocurrency industry and encourage self-regulation between virtual asset service providers. By implementing guiding principles and requiring compliance registration, the Government intends to strengthen transparency, protect the interests of enterprises and customers, and prevent illegal activities. The move to restrict offshore cryptocurrency exchanges operating without proper registration demonstrates Taiwan’s commitment to creating a compliant and secure environment for cryptocurrency transactions. Binance’s pursuit of AML compliance registration further reflects the industry’s willingness to cooperate and adhere to regulatory requirements. Taiwan’s proposition to establish industry associations likewise outlines its efforts to foster collaboration and develop self-regulatory guidelines. These initiatives position Taiwan as a proactive player in the worldwide cryptocurrency landscape, promoting responsible practices and safeguarding the interests of all stakeholders.

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