Taiwan Eyes Self Regulation with New Crypto Business Category Proposal

Crypto News, in a move to bolster the cryptocurrency sector, Taiwan has proposed the introduction of a new business category in its regulations.

Taiwan Eyes Self Regulation with New Crypto Business Category Proposal

This initiative is aimed at enabling cryptocurrency-related firms to establish industry associations, thereby fostering the development of self-regulatory guidelines.

Details of the Proposal

The Ministry of Economic Affairs unveiled on Thursday its plan to amend the Standards of Classification of Commercial Group regulations. The proposed amendment seeks to include a category dedicated to digital asset services.

An official from the economic ministry provided insights into the scope of the newly proposed business category. It encompasses a range of operations within the cryptocurrency domain, such as:

• Exchanging cryptocurrency for legal tender or other digital tokens.
• Facilitating cryptocurrency transfers.
• Offering services related to crypto storage or management.
• Assisting with the issuance or sale of cryptocurrency.

Implications for the Crypto Industry

Once the business category is incorporated into the relevant regulations, cryptocurrency firms will have the green light to form industry associations. The ministry is currently seeking public feedback on the proposal and aims to finalize the amendment in collaboration with the Ministry of the Interior by mid or late October.

It’s worth noting that since July 2021, when the Financial Supervisory Commission introduced anti-money laundering rules, virtual asset services providers (VASPs) in Taiwan have been mandated to adhere to the country’s anti-money laundering laws. Apart from this, the crypto sector remains largely unregulated in Taiwan.

The establishment of an industry association would empower crypto firms to devise self-supervisory rules, enhancing the sector’s credibility and trustworthiness.

Binance’s Move and Upcoming Guidelines

In related news, Binance, the global leader in cryptocurrency exchanges, is in the process of registering for AML compliance under the FSC, as reported by The Block last week.

Furthermore, the FSC, designated as the primary regulator for the crypto industry in March, is in the midst of crafting a comprehensive set of guidelines pertaining to trading and payments for VASPs. An FSC representative revealed plans to release these VASP guidelines by the end of September.