Key Takeaways
- Taiwan’s Financial Supervisory Commission is poised to unveil “Guiding Principles” for managing virtual asset platforms and transactions, impacting operators across the country.
- The past saw Taiwan’s central bank not recognizing cryptocurrencies as legal tender and local banks unable to engage with Bitcoin-related services.
- Major exchanges and platform operators form the Taiwan VASP Association Preparatory Group to align with regulatory compliance, fostering self-regulation and government communication.
The global impact of cryptocurrency around the world has been monumental. Given the rapid developmental phase, the Taiwan Financial Supervisory Commission is expected to officially announce the “Guiding Principles for the Management of Virtual Asset Platforms and Transaction Business Enterprises (VASP).” The Taiwan VASP regulatory group is expected to be crucial since the guidelines will apply to virtual currency operators all around Taiwan by mid-October. So, what else do you need to know? Let’s find out!
The New Regulation
The regulatory environment in Taiwan so far has posed unique challenges for users. Previously, the Central Bank in Taiwan did not officially recognize cryptocurrencies as legal tender and local banks were prohibited from accepting or facilitating Bitcoin-related services. This included Bitcoin-to-fiat exchanges. Notably, no specific licenses were mandated for virtual currency or fiat-to-virtual currency exchange services either.
However, with the formation of VASP regulations, Taiwan will now have a set of regulations that virtual asset providers will have to comply with. In fact, Taiwan’s major exchanges, alongside several platform operators, have started taking action to comply with the Financial Supervisory Commission’s Anti-Money Laundering Prevention Act Statement.
They have proactively formed the Taiwan Virtual Asset Platform and Transaction Business Association (referred to as the Taiwan VASP Association Preparatory Group). This collaborative effort involves pooling resources and personnel to expedite the association’s establishment, aiming to enhance industry self-compliance and establish an efficient dialogue channel with the government.
All in all, the collaborative efforts to promote the cryptocurrency industry in Taiwan is a crucial development. The potential impact of the association’s establishment on the global cryptocurrency field is huge, and Taiwan is expected to see further development down the road.
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