March 27, 2024
Taiwan Bans Unregistered Foreign Crypto Exchanges.
Latest Cryptocurrency News

Taiwan Bans Unregistered Foreign Crypto Exchanges

Taiwan’s Financial Supervisory Commission (FSC) is taking steps to enhance protections for cryptocurrency investors by introducing new regulations and guidelines.

The FSC has outlined key points for the regulation of Taiwan’s cryptocurrency market and has released industry guidelines for virtual asset service providers (VASPs) operating within the country as of September 26.

Some of the highlighted rules in the guidelines include the separation of exchange treasury assets from customer assets and the establishment of mechanisms for reviewing the listing and delisting of virtual assets.

Furthermore, the FSC has mandated that foreign VASPs must not offer their services in Taiwan without obtaining the necessary approvals from the regulatory authority. The FSC stated:

“Overseas virtual asset platform operators are not allowed to provide business within the territory of the country […] unless they have been registered in accordance with the law.”

The FSC has also encouraged VASPs to engage in self-regulation within the cryptocurrency industry. Relevant VASP associations are expected to formulate self-regulatory norms based on the principles outlined in the guidelines.

These guidelines coincide with major cryptocurrency exchanges in Taiwan coming together to establish a joint self-regulatory association. On September 26, local exchanges like Maicoin, BitstreetX, Hoya Bit, Bitgin, Rybit, Xrex, and Shangbito officially formed the Taiwan Virtual Asset Platform and Transaction Business Association to promote industry standards and collaborate with regulators.

Additionally, notable global cryptocurrency trading firms like Binance have been serving customers in Taiwan. Binance reportedly applied for registration in Taiwan under the Money Laundering Control Act and the FSC in August.

These developments follow reports in early September stating that the FSC had created a draft of 10 guiding principles for managing digital currencies in Taiwan, with plans to crack down on unregistered cryptocurrency exchanges. The FSC is set to become the primary regulator of cryptocurrencies in the country in 2023.

Image by tawatchai07 on Freepik

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