Key takeaways:
- Taiwan is apparently preparing new regulations for VASPs, including limits on foreign crypto exchanges that are not registered there.
- In addition to requiring operators to develop rules for examining listing and delisting, the draft guidelines also call for improving information sharing.
Taiwan, a nation in East Asia, is apparently preparing new regulations for virtual asset service providers (VASPs) that will include limits on foreign cryptocurrency exchanges that are not registered there.
The Financial Supervisory Commission (FSC) of Taiwan reportedly prepared a draft of 10 guiding principles for managing virtual currencies in the nation on September 7, according to a local news source, the Central News Agency.
In addition to requiring operators to develop rules for examining listing and delisting, the draft guidelines also call for improving information sharing. They further state that VASPs should put money laundering prevention measures in place and call for separate custody of customer and platform assets.
A prohibition on overseas VASPs illegally recruiting businesses in Taiwan is one of the ten principles outlined by the FSC. The FSC suggested that foreign cryptocurrency exchanges should refrain from approaching Taiwanese customers or residents with business if they lack a Taiwanese firm registration and violate the country’s anti-money laundering regulations.
The report emphasized that the FSC will reference worldwide standards and take changes to its laws into consideration as they become necessary in the future. According to the article, a formal announcement is anticipated by the end of September.
Huang Tien-mu, the chairman of the FSC, declared earlier this year that the FSC would take over as Taiwan’s primary cryptocurrency regulator.
On March 20, the representative emphasized that the FSC’s future framework for regulating cryptocurrency will include essential policies and regulations, such as separating company assets and customer funds.
Huang stated that initially, the FSC would be in charge of overseeing payments and transactions. He emphasized that the FSC will not be in charge of nonfungible tokens (NFTs).
Recently, a People’s Court in China released a thorough report that examines the legal ramifications of virtual assets, changing the country’s view on cryptocurrencies. The paper makes the case that criminal and civil laws should be combined to address crypto crimes.
