Taiwan’s financial regulator has introduced new guidelines aimed at strengthening investor protections in the cryptocurrency sector.
The Financial Supervisory Commission (FSC) released its regulatory framework for virtual asset service providers (VASPs) operating in Taiwan on September 26th.
Among the rules are requirements to separate customer and company assets as well as formal procedures around listing and delisting virtual assets.
The FSC notably stipulated that overseas crypto exchanges must refrain from offering services in Taiwan unless officially registered and approved within the country. Major global platforms like binance-resumes-operations-in-belgium-after-regulatory-suspension">Binance, Bybit, and Kraken currently serve Taiwanese users.
“Overseas virtual asset platform operators are not allowed to provide business within the territory of the country […] unless they have been registered in accordance with the law,” the FSC statement read.
The regulator is also encouraging VASPs to adopt self-regulatory standards aligned with the new guidelines. On the same day, top local exchanges jointly established the Taiwan Virtual Asset Platform and Transaction Business Association for this purpose.
The move comes shortly after reports emerged earlier in September that the FSC drafted principles to regulate cryptocurrency and limit unregistered exchanges. The FSC will become the primary crypto regulator in Taiwan starting in 2023.
By introducing clear crypto rules and requiring compliance from foreign players, the FSC aims to promote the ongoing growth of digital asset adoption while ensuring adequate protections for Taiwanese investors. The news signals Taiwan’s intent to strike a balance between innovation and regulation in its evolving crypto sector.
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