Key takeaways :
- Lawmakers in Taiwan are aiming to create a first draft of a special law about offshore exchanges by the end of November 2023.
- Currently, Taiwan only requires virtual asset service providers to comply with anti-money laundering laws.
According to a report from The Block, lawmakers in Taiwan are working towards presenting the initial draft of a special cryptocurrency regulation law by the end of November 2023. Yung-Chang Chiang, a representative in the Legislative Yuan of Taiwan, stated in an interview that he aims to have this first draft ready for parliamentary review by the end of November or possibly sooner.
Chiang emphasized the necessity of such legislation to effectively oversee and regulate businesses operating in the cryptocurrency sector. It’s worth noting that Taiwan’s financial regulatory authority had previously released guiding principles for virtual asset companies in September to strengthen its supervision of the crypto industry.
As Yung-Chang Chiang, a member of Taiwan’s Legislative Yuan, highlighted, this forthcoming legislation is seen as crucial for the effective regulation of cryptocurrency firms.
This development closely follows Taiwan’s cryptocurrency sector’s efforts to establish an industry association, coinciding with the impending release of official regulatory guidelines by the country’s financial regulator later in the week.
Nine cryptocurrency companies issued a joint statement in mid-October, expressing their intention to seek the formation of an industry association. They have also formed a working group to expedite the establishment of this association.
At present, Taiwan mandates that virtual asset service providers adhere to anti-money laundering (AML) regulations, while the broader cryptocurrency industry largely operates without comprehensive regulation. Chiang pointed out that numerous cryptocurrency platforms have not yet fully adhered to AML compliance requirements.
Chiang also mentioned that passing the cryptocurrency regulation law is unlikely to happen before the current legislative session concludes later this year. However, he anticipates that such legislation is likely to come into effect sometime after the middle of 2024.
