Regulation
Taiwan creates official cryptocurrency association to regulate its crypto sector
Taiwan has officially established a cryptocurrency industrial association under the direction of the government. This is a proactive stance aimed at regulating the crypto industry by creating a structured framework that promotes innovation while ensuring security.
The creation of the association reflects the government’s commitment to developing robust regulations that address the unique challenges and opportunities presented by cryptocurrencies. By bringing together industry players, Taiwan aims to foster a responsible digital asset economy and position itself as a crypto-friendly environment.
Creation of the Crypto Industry Association
that of Taiwan The cryptocurrency industry has formed a new self-regulatory association of 24 registered cryptocurrency companies. Led by Titan Cheng, CEO of BitoPro, and Winston Hsiao of XREX, the Taiwan Virtual Asset Service Provider Association aims to develop guidelines classifying and managing virtual asset service providers. This step towards self-regulation is a priority as Taiwan has faced various criminal uprisings regarding the crypto sector, such as a recent fraud case involving 32 people from platforms like Ace exchange.
The Financial Supervisory Commission believes that proper development of the crypto industry is crucial for Taiwan’s economy. The main task of the association is to formulate self-regulatory rules balancing industry interests and consumer protection in order to create a trustworthy environment attracting domestic and global participants in virtual assets.
Read also: Binance Holds First In-Person Law Enforcement Training
Current regulatory landscape and future directions
Taiwan cracks down on irregularities in the sector with crypto regulations. In July 2021, new rules required crypto companies to comply anti-money laundering (AML)
laws. However, most of the crypto industry remains unregulated, prompting a new crypto association to establish self-regulatory frameworks.
Last month, proposed amendments would require domestic and foreign crypto businesses in Taiwan to register to comply with the AML law or face up to 2 years in prison, signaling the government’s tough stance against illicit financial activities .
In the meantime, Taiwan Financial Supervisory Commission (FSC) has been monitoring Bitcoin ETFs throughout April to gauge demand and public readiness. The FSC will soon release findings that could give the green light for Taiwanese investors to begin purchasing Bitcoin ETFs overseas again, reflecting an openness to crypto innovations within appropriate regulatory safeguards.
Read also: Joe Biden faces backlash for accepting Bitcoin and crypto donations