The world-renowned cryptocurrency exchange, Binance, is seemingly making strategic global moves. Its latest crusade is set on the island of Taiwan, where it has reportedly filed an application for registration according to the territory’s Money Laundering Control Act and the Financial Supervisory Commission (FSC) compliance.
This development puts the exchange in line with Taiwan’s ongoing efforts to enforce lively Anti-Money Laundering (AML) laws, as Taiwanese regulators have shifted to mandatory AML compliance for virtual asset service providers (VASPs). However, it’s an area in which these VASPs might find a challenge, as Taiwan’s developing regulatory status, while improving, still lacks noteworthy regulation.
In response to the growing need for regulation, Taiwan’s Financial Supervisory Commission (FSC), established as the primary regulator for the cryptocurrency industry, is now concurrently formulating comprehensive guidelines for cryptocurrency trading and payments. These new policies, apparently slated for release by the end of September, signify a shifting paradigm for Taiwan’s crypto landscape, one that the VASPs and Binance will have to navigate.
Of course, this increased regulatory imposition does not come without contention. As affirmed by Kevin Cheng, a director at the Taiwan Fintech Association and a former chief compliance officer at a Taiwanese crypto exchange, the FSC may push for stringent measures akin to those of traditional financial institutions. These might include requiring VASPs to maintain a clear separation between their crypto assets and clients and requiring them to undergo annual audits by accounting firms.
While such regulations seem practical at face value, the complexity of the crypto domain might see accounting firms shying away due to the specialized knowledge required. As Cheng rightly posits, the focus needs to move beyond accounting and auditing techniques towards understanding crypto-related information more intricately.
Nevertheless, Taiwan’s regulatory climate shows sign of progression with legislators proposing an amendment to establish a dedicated crypto-focused bureau within the FSC. This would mark a substantial milestone for the crypto community and regulatory oversight in Taiwan.
Meanwhile, Binance’s ongoing expansion is not exclusive to Taiwan. Already registering a capital of $944,000 via ‘Binance International Limited Taiwan Branch (Seychelles)’, it extended its presence to Japan, followed by acquisition of Sakura Exchange BitCoin. This global growth could serve as a signal for other companies within the industry to begin adequately strategizing themselves to adapt to the changing regulatory winds.
Ultimately, while regulatory uncertainty persists, the recent moves by Binance and Taiwan essentially underscore the evolving nature of regulations and the adaptability required by companies. As more territories set firm regulatory expectations, the global crypto ecosystem might find itself simultaneously challenged and benefited by the freshly established rules of the game.
Source: Cryptonews
