Taiwan Proposes Regulations for Offshore Cryptocurrency Exchanges
Taiwan is taking steps to regulate offshore digitalย currency exchanges that are not registered with local regulators. In an effort to establish clear guidelines for the industry, the countryโs Financial Supervisory Commission has drafted 10 principles that will govern virtual asset service providers. These principles, expected to be released by the end of September, will cover numerous aspects such as asset listing and delisting, custody of customer assets, and anti-money laundering procedures.
The Key Principles for Digital Asset Regulation
To secure transparency and fairness in the digital asset market, Taiwanese regulators have outlined 10 key principles for digital assets:
- Digital asset issuance management: Platforms must provide essential information about the issuance of digital assets and link to the issuersโ websites.
- Asset listing and delisting review: Corporations need criteria and processes for reviewing digital asset white papers and integrating them into their controls.
- Asset separation: Platforms should keep customer assets separate from their own during transactions.
- Trading fairness and transparency: Platforms must disclose digital asset trading regulations to secure market fairness.
- Contract, advertising, and complaints: Platforms should prioritize fairness, mutual benefit, and customer protection.
- Operational systems and security: Platforms must have clear management systems for operations, information security, and wallet keys.
- Information disclosure: Platforms need to transparently disclose details about asset issuance, listings, asset segregation, trading information, and customer protection.
- Internal control and audits: Platforms must have internal controls and allow regulatory audits.
- Equal anti-money laundering oversight: Individuals and corporations should comply with anti-money laundering rules.
- Overseas dealer restrictions: Unregistered foreign platforms cannot solicit business in Taiwan.
Hot Take:
Taiwanโs move to regulate offshore digitalย currency exchanges demonstrates its commitment to fostering a transparent and secure digital asset market. By setting clear standards and guidelines, the country intendsย to protect investors and prevent illicit activities. The implementation of these regulations will likely contribute to the overall stability and legitimacy of the industry of digitalย currency in Taiwan.
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