Taiwan launches crypto association to strengthen industry self-regulation

Taiwan has taken a step forward in regulating its cryptocurrency sector by officially establishing the Taiwan Virtual Asset Service Provider Association.

A total of 24 crypto companies, all registered with the Financial Supervisory Commission (FSC) to comply with anti-money laundering (AML), have joined the association. This newly established body is set to play a crucial role in the development and oversight of the crypto industry in the country.

The association will be chaired by Titan Cheng, founder and CEO of BitoPro, one of the leading cryptocurrency exchanges in Taiwan. Winston Hsiao, co-founder and chief revenue officer of XREX, will serve as vice president. The association’s main task is to create self-regulatory guidelines to ensure the industry operates smoothly and aligns with government standards.

Role of the Financial Supervisory Commission

The FSC asked the new association to develop self-monitoring rules. The commission highlights the importance of the growth of the virtual assets sector and its connection to Taiwan’s broader societal and economic development. Hsiho Huang, director of the securities companies division at FSC, said:

“The FSC attaches great importance to the development of the virtual assets sector. We believe that the healthy development of this industry is closely related to the development of society and economy.

Since July 2021, the FSC has required Cryptocurrency service providers must adhere to AML laws. This regulation aims to ensure that the sector operates transparently and securely, protecting against financial crimes.

Objectives and responsibilities of the association

The main objective of the Taiwan Virtual Asset Service Provider Association is to formulate self-regulatory guidelines. These guidelines will focus on managing the classification and ranking of Virtual Asset Service Providers (VASP). The association aims to balance the growth of the sector with the need to meet government expectations and protect consumer rights.

The association said the self-regulatory guidelines will meet both industry interests and government requirements. This initiative is expected to create a more structured and reliable environment for cryptocurrency activities in Taiwan.

In addition to the creation of the association, the Taiwan Ministry of Justice proposed amendments to the existing text. AML Laws. These amendments would require domestic and foreign crypto companies wishing to operate in Taiwan to register to comply with the AML. Failure to comply with these rules can result in imprisonment of up to two years.

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