Key takeaways:
- The FSC has revealed that in September 2024, a new draft of digital asset legislation for Taiwan will be proposed.
- The committee will also draft legislation to guard against the dangers posed by digital assets to the stability of the established financial system.
The FSC has revealed that in September 2024, a new draft of digital asset legislation for Taiwan will be proposed.
Huang Tianmu, the FSC chairman, stated that the forthcoming draft bill will seek to ensure investor safety and to establish more effective laws for digital asset markets, as per a news report published by UDN on March 4.
In addition, the speech forewarned investors about the possible fraud dangers connected to digital currencies and threatened to impose severe administrative penalties on any merchants who attempted to deceive investors.
In his speech, Huang underlined how the traditional financial system is at risk due to the increasing interconnectedness between digital assets and it. The committee will also draft legislation to guard against the dangers posed by digital assets to the stability of the established financial system.
On October 25, lawmakers from Taiwan presented the Virtual Asset Management Bill to the unicameral parliament. The purpose of the measure is to “properly supervise” the sector and offer “better protection” for customers.
Additionally, the measure proposed a fine of two million Taiwanese dollars, or about $60,000, to twenty million Taiwanese dollars, or $600,000, for unlicensed Virtual Asset Service Providers (VASPs).
Additionally, a research on Bitcoin exchange-traded funds (ETFs) will be released by Taiwan’s Chamber of Commerce in April, as stated by Gao Jingping, the deputy director of the Warranty Bureau.
Tianmu also mentioned that Taiwan is thinking of allowing spot Bitcoin Exchange Traded Funds (ETFs) under its regulatory jurisdiction, but he issued a warning to market players not to invest in exchange-traded products based on foreign cryptocurrencies.
The FSC of Taiwan forbids foreign VASPs from operating in Taiwan without first securing the required regulatory authorization.
On September 26, 2023, the nation’s principal cryptocurrency exchanges established a self-regulatory organization, which led to the creation of the regulations. Local exchanges, BitstreetX, Hoya Bit, Bitgin, Rybit, Xrex, and Shangbito, teamed up to assist the cryptocurrency sector and work with authorities.
On November 9, 2023, the FSC granted Cathay Securities the nation’s first license for a security token offering (STO), allowing the company to issue $930,000 worth of tokenized green bonds every six months.
