The Financial Supervisory Commission (FSC) of Taiwan has formulated new rules to enhance protections for cryptocurrency investors. The FSC released a set of industry guidelines on September 26th for virtual asset service providers (VASP) operating in the country. The guidelines include separating exchanges’ treasury assets from customer assets, as well as establishing mechanisms for the listing and delisting of virtual assets.
Additionally, the FSC has mandated that foreign VASPs must obtain necessary approvals from the regulator before providing services in Taiwan. The authority emphasized that overseas virtual asset platform operators are prohibited from conducting business within the country unless they have been registered in accordance with the law.
The FSC has also encouraged VASPs to promote self-regulation within the cryptocurrency industry. They expect relevant VASP associations to develop self-regulatory norms based on the contents of the guiding principles. In line with this initiative, major crypto exchanges in Taiwan, including Maicoin, BitstreetX, Hoya Bit, Bitgin, Rybit, Xrex, and Shangbito, announced the establishment of a joint self-regulatory association.
Notably, global crypto trading firms such as Binance, Kraken, and ByBit have been serving customers in Taiwan. Kraken confirms that it offers full services to clients living in Taiwan, while ByBit supports Visa and Mastercard payments in countries like Taiwan.
In efforts to further regulate the cryptocurrency market, Binance reportedly applied to be registered in Taiwan under the Money Laundering Control Act and the FSC.
This development follows previous reports stating that the FSC drafted 10 guiding principles for the management of virtual currencies in Taiwan. The regulators plan to restrict unregistered crypto exchanges based on this framework. The FSC will assume primary regulatory authority over cryptocurrencies in Taiwan starting in 2023.
It is noteworthy that the FSC’s proactive measures to establish rules and guidelines for the cryptocurrency industry reflect the global trend of regulatory bodies aiming to provide a secure environment for investors while promoting the growth of digital assets.
In conclusion, Taiwan’s Financial Supervisory Commission has introduced new rules and industry guidelines to enhance protections for cryptocurrency investors. The regulations include separating exchange’s treasury assets from customer assets, reviewing mechanisms for virtual asset listing, and requiring foreign VASPs to obtain necessary approvals. The FSC has also called for self-regulation within the industry, prompting major exchanges to form a joint self-regulatory association. This move follows the FSC’s ongoing efforts to assume primary regulatory authority over cryptocurrencies in Taiwan.
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