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 countryโs Financial Supervisory Commission (FSC) has drafted 10 guiding principles for virtual asset service providers (VASPs) to establish their own self-regulatory regulations. These principles intendย to strengthen information disclosure, establish review standards for virtual asset listing and delisting, and secure the separation and custody of companiesโ and customersโ 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.
Binanceโs 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 worldโs largest cryptocurrency exchange, is asย ofย now applying for AML compliance registration in Taiwan. Despiteย theย factย that Binance is not regulated in the country, it has established a local entity named โBinance International Limited Taiwan Branch (Seychelles).โ The Government approved Binanceโs company registration in Taiwan with a registered financialย 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 intendsย to foster the development of self-regulatory guidelines in the cryptocurrency industry.
Hot Take: Taiwanโs Strides in Cryptocurrency Regulation and Self-Regulation
Taiwan is taking wholeย lotย 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 intendsย 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 Taiwanโs commitment to creating a compliant and secure environment for cryptocurrency transactions. Binanceโs pursuit of AML compliance registration further reflects the industryโs willingness to cooperate and adhere to regulatory requirements. Taiwanโs 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.
Theon Barrett shines as a distinguished crypto analyst, accomplished researcher, and skilled editor, making significant strides in the field of cryptocurrency. With an astute analytical approach, Theon brings clarity to intricate crypto landscapes, offering insights that resonate with a broad audience. His research prowess goes hand in hand with his editorial finesse, allowing him to distill complex information into accessible formats.
