Taiwan’s Financial Supervisory Commission (FSC) has formulated ten guiding principles aimed at managing cryptocurrency within its jurisdiction. Notably, this is in a move to regulate the nation’s cryptocurrency landscape as reported by a local agency.
Strengthening Oversight and Compliance
The draft guidelines, introduced by the FSC, emphasize the need for enhanced transparency and compliance among Virtual Asset Service Providers (VASPs) operating in Taiwan. These principles further set a clear roadmap for a more responsible cryptocurrency ecosystem.
Under the new framework, VASPs will be required to significantly enhance their information disclosure practices, ensuring that investors have access to vital data.
Also, VASPs will be mandated to establish robust standards for the listing and delisting of cryptocurrencies, creating a more secure trading environment.
To protect customer and platform assets, the guidelines call for the separate custody of these assets. This measure further aims to prevent any potential misuse or misappropriation.
The FSC’s principles insist that VASPs implement effective measures to prevent money laundering. This is in Recognition of the importance of combating illicit financial activities.
Taiwan’s Stand on Unregistered Foreign Crypto Exchanges
Among the ten principles laid out by the FSC, a notable rule prohibits unregistered foreign VASPs from soliciting business within Taiwan.
The FSC unequivocally states that overseas crypto platforms lacking a registered presence in Taiwan and failing to comply with the country’s Anti-Money Laundering laws are barred from soliciting business within Taiwan or from its citizens.
International Alignment and Future Amendments
Importantly, the FSC is committed to aligning Taiwan’s cryptocurrency regulations with international best practices. It also demonstrates a forward-looking approach by considering future regulatory amendments when necessary.
Furthermore, an official announcement regarding these regulations is expected by the end of September. This development comes after FSC Chairperson Huang Tien-mu’s announcement in March. He also announced that the FSC would take on the role of Taiwan’s primary crypto regulator.
Focus on Asset Segregation
Huang Tien-mu further highlighted that the upcoming regulatory framework would emphasize the separation of company assets and customer funds. This will further promote greater security and trust within the cryptocurrency sector.
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