Taiwan tightens crypto rules with new guidelines and industry group

Taiwan tightens crypto regulations with new FSC guidelines and the formation of an industry association by leading exchanges.

On Sep. 26, Taiwan’s Financial Supervisory Commission (FSC) released a comprehensive set of guidelines for virtual asset services providers (VASPs), marking a major step in regulating the country’s burgeoning cryptocurrency market.

Almost concurrently, nine leading crypto exchanges in Taiwan have formed a working group to establish an industry association. The latest move is a proactive step towards self-regulation and aligning with the FSC’s newly released guidelines.

FSC’s guidelines for crypto exchanges

The FSC’s guidelines are extensive and focus on several key areas. First, they require domestic crypto platforms to ensure the separation and custody of the companies’ and customers’ assets. This is aimed at enhancing the security and integrity of funds held on these platforms.

Second, the guidelines mandate the establishment of review standards for the listing and delisting of virtual assets. This ensures that only legitimate and compliant tokens are traded on Taiwanese platforms.

Third, the guidelines call for strengthened information disclosure to improve transparency. This includes providing clear and accessible information about trading fees, withdrawal limits, and other operational aspects.

Moreover, offshore exchanges that wish to operate in Taiwan must register with the FSC and comply with the country’s anti-money laundering (AML) regulations. The guidelines are explicit that foreign virtual asset platforms that have not registered may not solicit business within Taiwan or target Taiwanese nationals.

Industry association takes shape

In response to the FSC’s guidelines, nine major crypto exchanges in Taiwan, including MaiCoin, BitoGroup, and ACE, have initiated the formation of an industry association. The working group is led by Winston Hsiao, XREX’s co-founder and Group CR

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Author: Rony Roy

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