March 27, 2024
Taiwan plans to tighten its grip on overseas cryptocurrency exchanges
Latest Cryptocurrency News

Taiwan Proposes Stricter Guidelines for Cryptocurrency Operations

The East Asian nation of Taiwan is reportedly devising plans to impose restrictions on unregistered overseas cryptocurrency exchanges operating within its borders as part of forthcoming guidance for virtual asset service providers (VASPs).

On September 7, the Central News Agency, a local media outlet, revealed that Taiwan’s Financial Supervisory Commission (FSC) has formulated a draft comprising ten guiding principles to govern the handling of virtual currencies in the country.

These draft guidelines encompass improvements in information disclosure, the establishment of standards for reviewing listings and delistings, and the requirement for the separate custody of customer and platform assets. They also mandate that VASPs implement measures to combat money laundering.

Among the ten principles outlined by the FSC is a regulation prohibiting foreign VASPs from engaging in unauthorized solicitation of business within Taiwan. The FSC suggests that overseas cryptocurrency platforms without registered companies in Taiwan and those not adhering to the nation’s anti-money laundering laws should refrain from seeking business from Taiwanese citizens. The report emphasizes that the FSC will take international practices into consideration and remain open to future regulatory amendments. An official announcement is anticipated by the end of September, according to the report.

In March, FSC Chairperson Huang Tien-mu announced that the FSC would take on the role of Taiwan’s primary cryptocurrency regulator. On March 20, he underscored that the FSC’s upcoming regulatory framework for cryptocurrencies would encompass significant policies and rules, including the segregation of company assets and customer funds.

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