Taiwan has taken a significant step towards regulating its flourishing virtual asset market by introducing a new bill called the “Virtual Asset Management Regulations Draft,” which aims to create a comprehensive regulatory framework for the crypto industry.
The move comes as Taiwan grapples with the exponential growth of virtual assets in the country.
The bill’s primary goal is to establish rules for virtual asset service providers that ensure investors are protected, and any risks to financial stability are quickly identified and dealt with.
Current regime
Taiwan currently only requires virtual asset service providers to adhere to anti-money laundering regulations, a directive introduced by the Financial Supervisory Commission (FSC) in July 2021.
Critics argue that the FSC’s regulatory measures have lagged behind the industry’s growth and need to be updated. Virtual asset operators have continued to multiply, and their offerings have become more diversified, but the FSC primarily only focuses on anti-money laundering compliance.
The overall cryptocurrency sector remains largely unregulated, and lawmakers believe the country needs a comprehensive regulatory framework for the burgeoning crypto industry.
As of August, the country was home to 200 domestic blockchain firms, according to the “Taiwan Blockchain Industry Map/Key Report.”
The bill
The proposed legislation will mandate cryptocurrency platforms in Taiwan to secure a permit to continue operating in the country, and non-compliance could result in regulatory intervention, including a potential suspension of operations.
Although the timeline for
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Author: Assad Jafri
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