Taiwan Aims to Introduce Special Crypto Law by November
Lawmakers in Taiwan are working towards the development of a special law for cryptocurrencies, with the goal of releasing a first draft by the end of November 2023. Yung-Chang Chiang, an official in the Legislative Yuan of Taiwan, emphasized the necessity of this law to regulate crypto-related businesses. The lawmakers are concerned about offshore markets and aim to prevent regulatory arbitrage. Chiang believes that crypto assets require a unique set of regulations due to their differences from traditional financial products.
Public Hearing and Financial Supervisory Commission Guidelines
In October, Chiang organized a public hearing in the Taiwanese parliament involving digital asset service providers, academics, and industry experts to discuss the draft proposal. This initiative follows guidelines released by Taiwan’s Financial Supervisory Commission (FSC) on September 26. The FSC’s guidelines focus on enhancing investor protections in the cryptocurrency industry by implementing measures such as separating exchange assets and customer funds. The rules also state that foreign virtual asset service providers cannot operate in Taiwan without proper regulatory approvals.
The Formation of a Cryptocurrency Exchange Association
On the same day as the FSC’s guidelines release, major cryptocurrency exchanges operating in Taiwan formed an association to promote industry interests. This association aims to collaborate with regulators and advocate for favorable policies that support the growth and development of the cryptocurrency sector.
Hot Take: Taiwan’s Commitment to Crypto Regulation
Taiwan’s efforts to introduce a special crypto law demonstrate its commitment to regulating the cryptocurrency industry effectively. By establishing specific regulations tailored to the unique characteristics of crypto assets, lawmakers hope to address concerns surrounding offshore markets and prevent regulatory arbitrage. The public hearing and formation of a cryptocurrency exchange association further highlight Taiwan’s proactive approach towards fostering a favorable environment for the crypto sector. These initiatives, coupled with the Financial Supervisory Commission’s guidelines, indicate Taiwan’s determination to enhance investor protections and promote responsible growth in the cryptocurrency industry.
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