Financial Supervisory Commission chairman, Huang Tien-mu, confirmed that Taiwan’s top financial watchdog will regulate cryptocurrency, bringing much-needed clarity to the country’s crypto industry. This is a significant development for the crypto industry in Taiwan, which has so far only regulated the asset class under the framework of controlling money laundering.
The move comes after the collapse of FTX, which added a sense of urgency to Taiwan’s regulatory push as Taiwanese users were some of the largest exchange per capita users.The collapse highlighted the need for greater regulation and investor protection.
The announcement was welcomed by industry players, who have long advocated for clear and comprehensive regulations that would help the industry grow. Wayne Huang, CEO of XREX, said the industry could only grow when regulated. The logical next step would be collaboration between the FSC and the virtual asset service provider industry to establish regulatory operations.
However, reports suggest that the FSC will wait to regulate NFTs. According to Huang Tien-mu, the chairman of Taiwan’s Financial Supervisory Commission (FSC), NFTs are still in their early stages as an asset class, which is why it’s too soon to regulate them. Huang pointed out that NFTs are highly versatile and can represent a wide range of items, including commercial products, commodities, and securities, making it crucial for the FSC to develop a proper set of NFT classification guidelines, which will take more time. In the meantime, finding a balance between experimentation and protecting investors is a top priority, says Alex Liu, the CEO of Maicoin.
While some members of Taiwan’s parliament have called for the newly established Ministry of Digital Affairs (MODA) to be the primary regulator of cryptocurrencies, others have pointed out that the ministry lacks experience compared to the FSC, one of Taiwan’s two financial regulators. The other regulator is the Central Bank of the Republic of China, which oversees monetary policy, foreign exchange regulations, and other financial matters.
A preliminary legal framework is anticipated to be available by June, followed by an early draft later this year.
The move is likely to bring more excellent stability and legitimacy to the crypto industry in Taiwan, as it becomes one of the few countries to have comprehensive and transparent regulations in place for cryptocurrency.
