In a noteworthy stride towards improving safeguards for crypto investors, Taiwan’s Financial Supervisory Commission (FSC) is incorporating new regulations. With a firm decree released on Sept. 26, the FSC set forth key industry parameters for unregistered foreign virtual asset service providers (VASPs), including but not restricted to, prestigious global trading firms like Binance, Kraken, and ByBit that have been serving customers in Taiwan.
Taking a firm stance, the regulator stressed the separation of an exchange’s assets from that of its customers’ and the institution of an evaluation mechanism for listing and delisting virtual assets. It has become explicitly clear now that non-local VASPs will not be allowed to deliver their services in Taiwan without regulatory sanction. This move is part of a broader bid to exercise control over the cryptocurrency market within the boundaries of Taiwan’s legal landscape.
Yet, on the other end of the spectrum, the FSC has extended an olive branch to foreign VASPs, inviting self-regulation in the cryptocurrency industry. This indicates a keenness to introduce a controlled yet flexible regulatory environment that is conducive to the growth of the industry.
On another note, the recent crackdown in Taiwan coincides with the creation of a joint self-regulatory body formed by local crypto exchanges. Some of the key players initiating the formation of this regulatory body are Maicoin, BitstreetX, Hoya Bit, Bitgin, Rybit, Xrex, and Shangbito.
This new wave of regulations comes in the wake of a budding trend of cities such as Hong Kong listing ‘suspicious’ cryptocurrency platforms following scandals such as that witnessed by JPEX. Interestingly, the FSC is expected to take over as primary regulator of cryptocurrencies in the country by 2023, implying forthcoming changes in the regulatory landscape.
Meanwhile in another corner of the world, Venezuela’s government has extended a forced reorganization period of its primary crypto oversight body – National Superintendency of Crypto Assets (Sunacrip) until March 2024. This has partially thrown the region’s crypto-industry into a tumultuous state considering that the industry, here, is firmly tied to the state that relies heavily on digital assets to dodge U.S. financial sanctions. Nevertheless, these regulatory hiccups happen to be part of a broader global movement towards regulation and legitimacy of cryptocurrencies.
In conclusion, the cryptocurrency industry, in its nascent stages, is grappling with a scarcity of regulatory standards and the pitfalls of operational obscurity. As nations across the globe take decisive strides towards crafting rules that allow for the transparent operation of this fledgling industry, the impact of Taiwan’s recent regulatory initiatives remains something to keenly watch out for.
Source: Cointelegraph
