Taiwan has formally introduced a draft crypto legislation, marking its first reading at the Legislative Yuan, the country’s parliament. The proposed special law mandates all crypto platforms in Taiwan to seek a permit, with regulatory authority empowered to issue cease-operation orders for non-compliance.
“After the first reading of the bill, discussions on the regulatory framework for the virtual asset industry have progressed to the next stage… We hope that the Financial Supervisory Commission can also submit their version of a draft bill to the legislature, allowing various sectors of society to further consolidate consensus during the process,” media reports quoted Yung-Chang Chiang, a member of the Legislative Yuan who jointly proposed the special act, as saying.
Yung-Chang Chiang, a Legislative Yuan member and co-sponsor of the special act, emphasized the progress made in discussions regarding the regulatory framework for the virtual asset industry. Chiang expressed the hope that the Financial Supervisory Commission (FSC) would present its version of a draft bill to foster broader societal consensus.
While the FSC had previously released guidelines for the crypto sector to establish self-supervisory rules, the lack of legal enforceability prompted the need for this special law. Despite no specific timeline for the second reading, expectations suggest it may not occur before January 2024, aligning with the conclusion of the current lawmakers’ tenure.
As of now, Taiwan has obligated virtual asset service providers to adhere to anti-money laundering laws since July 2021, while the broader crypto industry remains largely unregulated.
