Taiwan’s Financial Supervisory Commission for Virtual Currency Management is on the verge of a game-changing moment, ready to launch 10 guiding principles for virtual asset providers in September. These far-reaching directives will influence the modus operandi of crypto companies, compelling them to establish review mechanisms, ensure the segregation of customers’ tokens from their own holdings and rigorously adhere to anti-money laundering laws (AML). Many heads turn opting for a skeptical glance, awaiting to see the sustainable impact and control these guidelines are set on to impose.
The ripple effect doesn’t stop at Taiwan’s borders, though, as the guidelines also aim to establish that unregistered overseas firms without a business solicitation permit in the country could face a stern stance. Thus, Taiwan flexes its regulatory muscle, reflecting its commitment to mitigating the potential risks of crypto facilitation.
Earlier this year, Taiwan showcased its intent to join the ranks of countries with unique legislations governing the crypto sector. The nation’s supervision commission asserted its position as the driving force behind the crypto regime, steering the sector towards regulated shores. This progressive move signifies an attempt to embrace the flourishing crypto sector while ensuring a safe environment for all stakeholders.
However, the question arises, “Is this the first time Taiwan is tightening its reins over the virtual asset industry?” Retrospective analysis shows Taiwan’s steady devoted push towards crypto regulation. In 2018, the East Asian hub insisted that virtual asset service providers must conform to local AML regulations. Fast forward to 2021, the country further tightened its grip, issuing rules in sync with guidance from the global Financial Action Task Force (FATF). A testament to the journey is the registration of 24 crypto platforms last year.
Despite Taiwan’s determined push towards crypto regulation, the unpredictability of the crypto landscape poses a pertinent question – will this initiative guide or curb the nascent industry? With these impending principles, Taiwan walks a fine line between encouraging innovation and ensuring security. The crypto community eagerly waits to witness the impact of these regulatory moves, whether they will amplify the sector’s credibility or inadvertently stifle its growth. The outcome remains a cipher – an enigma as profound as the crypto world itself.
Source: Coindesk
