Taiwan Introduces New Regulations and Guidelines for Cryptocurrency Market

Taiwan Introduces New Regulations and Guidelines for Cryptocurrency Market

Crypto News – Taiwan’s Financial Supervisory Commission (FSC) is taking significant steps to enhance investor protections in the cryptocurrency realm by unveiling new regulatory measures.

On September 26, the FSC outlined the pivotal aspects for overseeing Taiwan’s cryptocurrency market, releasing comprehensive guidelines for Virtual Asset Service Providers (VASPs) operating within the country.

In these guidelines, the FSC emphasized critical industry-wide rules, including the segregation of exchange treasury assets from customer assets and the establishment of robust mechanisms for listing and delisting virtual assets.

Moreover, the FSC mandated that foreign VASPs must not offer their services in Taiwan without obtaining requisite approvals from the regulatory body. The FSC explicitly stated, “Overseas virtual asset platform operators are not allowed to conduct business within the country’s territory unless they have been lawfully registered.”

The authority also encouraged VASPs to proactively advocate for self-regulation within the cryptocurrency industry. Relevant VASP associations are expected to develop self-regulatory norms based on the guidelines provided by the FSC.

These guidelines were released in conjunction with major crypto exchanges in Taiwan announcing the formation of a collaborative self-regulatory association. On September 26, local exchanges such as Maicoin, BitstreetX, Hoya Bit, Bitgin, Rybit, Xrex, and Shangbito officially established the Taiwan Virtual Asset Platform and Transaction Business Association. The aim is to promote the industry and collaborate with regulators.

Notably, in addition to local exchanges, major global crypto trading firms like Binance have been catering to customers in Taiwan. As of the time of writing, Kraken exchange has confirmed offering “full services to clients living in Taiwan,” and Bybit exchange supports Visa and Mastercard payments in countries including Taiwan, according to information on its website.

In a recent development, it was reported that Binance had applied for registration in Taiwan under the Money Laundering Control Act and in compliance with the FSC’s regulations.

Kraken and Bybit have not yet responded to Cointelegraph‘s request for comment.

This news follows reports from local publications on September 7, indicating that the FSC had drafted 10 guiding principles for managing digital currencies within the country, with plans to restrict unregistered crypto exchanges. This regulatory framework aligns with the FSC’s role as the primary regulator of cryptocurrencies in Taiwan, a responsibility assumed in 2023.