Lawmakers in Taiwan are accelerating efforts to establish a pioneering crypto law for offshore exchanges. This comes with a target to present the first draft by the end of November 2023.
The urgency is further driven by concerns over activities in offshore markets and a commitment to avoiding regulatory arbitrage.
Lawmakers on Track for November Deadline
Yung-Chang Chiang, an official in the Legislative Yuan of Taiwan, shared in a recent interview that the primary goal is to have the first draft ready for parliamentary review by the end of November or even earlier. According to Chiang, such a legislative measure is deemed “necessary” to effectively regulate businesses operating in the crypto space.
Public Hearing Shapes Draft Proposal
Taking a proactive approach, Chiang conducted a public hearing on October 6th in the Taiwanese parliament. The event brought together key stakeholders, including digital asset service providers, academics, and industry experts, to discuss and refine the draft proposal. This collaborative effort aims to ensure a comprehensive and well-informed legislative framework.
Financial Supervisory Commission’s Guidelines and Industry Response
This initiative follows closely on the heels of guidelines released on September 26th by Taiwan’s Financial Supervisory Commission (FSC). These guidelines focus on enhancing investor protections in the cryptocurrency space.
Key provisions encompass the segregation of assets in exchanges’ treasuries from those of customers and robust mechanisms for reviewing digital asset listings and delistings. Furthermore, stringent requirements for foreign virtual asset service providers seeking to operate in Taiwan.
Formation of Cryptocurrency Exchange Association
Simultaneously, on the same day, major cryptocurrency exchanges operating in Taiwan took a united stand. This was by forming an association dedicated to advancing the interests of the industry. This collaborative effort reflects the industry’s commitment to self-regulation and proactive engagement with regulatory development.