An official document indicates that a crypto bill aimed at regulating digital assets successfully passed the initial review within Taiwan’s Legislative Yuan, its parliamentary body.

Yung-Chang Chiang, a legislator within the Legislative Yuan who co-authored this unique proposal, conveyed, “Following the initial reading of this bill, deliberations concerning the regulatory framework for the virtual asset sector have transitioned to the next phase.”

He further stated, “We anticipate the Financial Supervisory Commission’s forthcoming presentation of their own draft legislation to the legislature. This will facilitate broader consensus-building within society during the proceedings.”

It’s worth noting that while Taiwan’s Financial Supervisory Commission (FSC) introduced recommendations last month for the cryptocurrency field to construct its self-regulatory guidelines through a potential industry association, these guidelines, as per the legislator, lack legal binding.

Taiwan Proposes Strict Crypto Bill to Empower Regulators

Taiwan Proposes Strict Crypto Bill to Empower Regulators

Chiang asserted, “Under the authority of this unique legislation, regulatory bodies possess the capacity to impose administrative sanctions on operators who contravene these self-governance regulations.

The absence of such a specialized law would render regulators powerless in terms of imposing penalties.” He made this declaration during a parliamentary hearing earlier this month.

The proposed legislation, conceived by Chiang alongside sixteen other lawmakers, entails that all cryptocurrency platforms conducting operations in Taiwan must solicit a license. Should they fail to do so, regulatory authorities hold the prerogative to mandate a cessation of their activities.

The second reading of this crypto bill is not governed by any specific timetable but may not occur before January’s end in 2024, according to a statement from Chiang’s office. The present tenure of all Taiwanese lawmakers expires in January of the following year.

As of now, Taiwan has demanded that providers of virtual asset services adhere to anti-money laundering statutes since the FSC introduced such regulations in July of 2021. In the absence of this, the cryptocurrency sector operates with minimal regulatory oversight.

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