Taiwan’s Financial Supervisory Commission (FSC) has introduced a series of new crypto regulations aiming to enhance investor protections. These regulations aim to fortify oversight and safety in the cryptocurrency industry, media reports said.
On September 26, the FSC issued a comprehensive set of industry recommendations specifically tailored for virtual asset service providers (VASPs) operating within Taiwan. These guidelines serve as a blueprint for regulating the cryptocurrency sector in the country and encompass various industry best practices.
Among the key provisions included in the guidelines are the separation of exchange treasury assets from client assets and a thorough examination of the processes associated with listing and delisting virtual assets.
The FSC has also made it obligatory for overseas VASPs to refrain from conducting business in Taiwan unless they have obtained the necessary regulatory approvals and complied with anti-money laundering laws. The FSC emphasized this point, stating:
“Overseas virtual asset platform operators are not allowed to solicit business within the territory of Taiwan or from Taiwan citizens unless they have been registered in accordance with the Company Law, submitted to the Financial Supervisory Commission, and completed a declaration of compliance with money laundering prevention laws.”
In an effort to foster self-regulation within the cryptocurrency industry, the FSC encouraged VASPs to collaborate in developing self-regulatory standards based on the principles outlined in the guidelines.
Coinciding with the release of these guidelines, major cryptocurrency exchanges in Taiwan came together to establish a cooperative self-regulatory body. On September 26, a consortium of regional exchanges, including Maicoin, BitstreetX, Hoya Bit, Bitgin, Rybit, Xrex, and Shangbito, formally launched the Taiwan VASP Association with the objective of advancing the sector and working closely with regulators.
