Taiwan Seeks Global Input for Crypto Regulations

The Financial Supervisory Commission recently announced plans to host a public hearing focused on establishing “Guiding Principles for the Management of Virtual Asset Platforms and Trading Businesses (VASP).” The guidelines are set to focus on key principles including asset management, transaction transparency, and investor protection.

The forthcoming guidance incorporates ten essential principles, including strengthening the management of virtual asset issuance, developing review mechanisms for asset listing/delisting, and distinguishing platform assets from customer assets. It also aims to improve transaction transparency, contract formulation, advertising solicitation, and complaint handling. The Financial Supervisory Commission underlines the importance of establishing operational systems, information security measures, internal controls, and organizational review mechanisms. Additionally, the prohibition of illegal solicitation using foreign currency merchants is a major focus.

The separation of customer assets and platform assets, evaluation of discontinued commodities, and enhancement of investor protection are crucial goals set by Financial Supervisory Commission chairman Huang Tianmu. These objectives were established when the Commission was appointed as the oversight body for virtual assets by Taiwan’s Executive Yuan. In line with this, the Financial Regulatory Commission announced plans in March to develop guiding principles for VASP and encouraged self-regulatory standards and collaboration with related associations and ministries.

Despite China’s ban on crypto and related activities, Taiwan has taken an alternative approach by actively redefining its digital asset industry. Reports suggest that Taiwan Mobile Co., a government-licensed wireless service provider, is exploring potential investments in local crypto platforms, paving the way for future partnerships. Furthermore, XREX Inc., a Taipei-based financial institution that leverages blockchain technology, is among the prospective collaborators.

Taiwan’s pursuit of global input for crypto regulations demonstrates its commitment to fostering a robust and transparent digital asset ecosystem in the country.

#Cryptocurrencies #Taiwan #Regulation

Leave a Reply

Your email address will not be published. Required fields are marked *