In a bid to establish a regulated financial environment, Taiwan is drawing up restrictions against offshore cryptocurrency exchanges operating within its domains. The country’s Financial Supervisory Commission (FSC) is in the process of chalk-ing out a guidebook of ten principles to help virtual asset services providers (VASPs), like Binance, establish self-regulatory norms.
The focus of this proposed regulatory framework seems to be manifold. For instance, the guidelines seek to fortify information disclosure, formulate review standards for virtual asset listing, de-listing and importantly, ensure the division and safekeeping of corporate and customer assets.
But what does this mean for foreign crypto firms? The FSC expressly aims to curb illicit business solicitation by these businesses. Foreign VASPs will have to register according to company law and vouch for their adherence to anti-money laundering regulations to the FSC.
Failure to comply with these rules could result in these firms being denied business opportunities within Taiwan. This move comes after Taiwan recently appointed the FSC as the chief regulator for virtual-asset service providers, anticipating the introduction of thorough guidelines by the end of September.
Taiwan’s proactive approach towards creating industry standards does suggest a welcoming stance towards the crypto industry. This was evident when the Ministry of Economic Affairs proposed the addition of a new business category to encourage crypto-related companies to form industry associations, that potentially enhances self-regulation.
On the other hand, Taiwan seems to have taken a step back concerning non-fungible tokens (NFTs). The FSC has decided not to regulate these digital assets.
In recent months, Binance, the world’s largest crypto exchange, has been seeking registration in Taiwan to ensure compliance with anti-money laundering measures. Binance’s venture into Taiwan and its subsequent collaboration with Taiwan’s Criminal Investigation Bureau offers a glimpse of Taiwan’s growing appeal as potential hub for blockchain-related institutions.
Even telecommunications powerhouse Taiwan Mobile is reportedly in discussions with local crypto platforms about the possibility of collaborations or even an investment.
All evidences point towards Taiwan embracing this disruptive technology. However, it’s a delicate balance as Taiwan doesn’t want to stifle innovation but also safeguard its economy. As for crypto enthusiasts and skeptics alike, the Taiwanese saga is a cryptic case to watch as it underscores the quintessential question in the crypto world – To regulate, or not to regulate?
Source: Cryptonews
