Taiwan’s Financial Supervisory Commission (FSC) hasintroduced a set of stringent rules, effectively banning unregistered foreigncryptocurrency exchanges from operating within the country. This action occursas part of Taiwan’s commitment to enhancing investor protection and promotingresponsible practices within the crypto industry.
The FSC has outlined key measures to regulate thecryptocurrency market within its borders. These guidelines, released onSeptember 26, specifically target virtual asset service providers (VASPs)operating in Taiwan. The rules include industry-standard practices such assegregating the exchange’s treasury assets from customer assets andestablishing mechanisms for listing and delisting crypto assets.
Notably, the FSC has imposed strict restrictions on foreignVASPs, preventing them from offering their services in Taiwan unless they havereceived the necessary approval and registration from the regulatoryauthorities.
“Overseas virtual asset platform operators are notallowed to solicit business within the territory of my country or from Chinesecitizens unless they have been registered in accordance with the Company Law,submitted to the Financial Supervisory Commission and completed a declarationof compliance with money laundering prevention laws,” the FSC stated.
Taiwan Forges a Path to Crypto Regulation
In addition to regulatory oversight, the FSC has urged VASPsto engage in self-regulation within the cryptocurrency industry. Relevant VASPassociations are expected to formulate self-regulatory norms based on theguiding principles set out by the authority.
“Platforms should implement customer protectionregulations based on the principles of fairness and reasonableness, equality,reciprocity and good faith,” the FSC added.
Besides that, Taiwanese lawmakers have proposed an amendmentto the law to create a dedicated bureau within the FSC specifically forcrypto-related matters. This proposal, if passed, will expand the FSC’sregulatory capabilities to cover cryptocurrencies adding to its existingoversight of banking, securities, futures, insurance, and auditing.
FSC Joins Global Regulators
Taiwan’s FSC is the latest authority to address the need forstricter regulations in the crypto sector. Drawing inspiration from similarmeasures introduced by the European Union, Japan, and South Korea, Taiwan aimsto create a more secure environment for crypto investors and operators.
Last month, during a meeting with numerous domestic cryptocurrencyservice providers, the FSC revealed that Binance was in the process of seekingregistration for AML compliance. Although Binance operates in Taiwan, it is not yet fullyregulated by the local authorities. However, Binance has established a localentity known as Binance International Limited Taiwan Branch.
Binance has also taken proactive steps to collaborate withTaiwanese law enforcement agencies in the fight against cybercrime. In June,the exchange partnered with Taiwan’s Criminal Investigation Bureau to share itsexpertise in addressing digital asset-related crimes with over 200 Taiwaneselaw enforcement officers.
Taiwan’s Financial Supervisory Commission (FSC) hasintroduced a set of stringent rules, effectively banning unregistered foreigncryptocurrency exchanges from operating within the country. This action occursas part of Taiwan’s commitment to enhancing investor protection and promotingresponsible practices within the crypto industry.
The FSC has outlined key measures to regulate thecryptocurrency market within its borders. These guidelines, released onSeptember 26, specifically target virtual asset service providers (VASPs)operating in Taiwan. The rules include industry-standard practices such assegregating the exchange’s treasury assets from customer assets andestablishing mechanisms for listing and delisting crypto assets.
Notably, the FSC has imposed strict restrictions on foreignVASPs, preventing them from offering their services in Taiwan unless they havereceived the necessary approval and registration from the regulatoryauthorities.
“Overseas virtual asset platform operators are notallowed to solicit business within the territory of my country or from Chinesecitizens unless they have been registered in accordance with the Company Law,submitted to the Financial Supervisory Commission and completed a declarationof compliance with money laundering prevention laws,” the FSC stated.
Taiwan Forges a Path to Crypto Regulation
In addition to regulatory oversight, the FSC has urged VASPsto engage in self-regulation within the cryptocurrency industry. Relevant VASPassociations are expected to formulate self-regulatory norms based on theguiding principles set out by the authority.
“Platforms should implement customer protectionregulations based on the principles of fairness and reasonableness, equality,reciprocity and good faith,” the FSC added.
Besides that, Taiwanese lawmakers have proposed an amendmentto the law to create a dedicated bureau within the FSC specifically forcrypto-related matters. This proposal, if passed, will expand the FSC’sregulatory capabilities to cover cryptocurrencies adding to its existingoversight of banking, securities, futures, insurance, and auditing.
FSC Joins Global Regulators
Taiwan’s FSC is the latest authority to address the need forstricter regulations in the crypto sector. Drawing inspiration from similarmeasures introduced by the European Union, Japan, and South Korea, Taiwan aimsto create a more secure environment for crypto investors and operators.
Last month, during a meeting with numerous domestic cryptocurrencyservice providers, the FSC revealed that Binance was in the process of seekingregistration for AML compliance. Although Binance operates in Taiwan, it is not yet fullyregulated by the local authorities. However, Binance has established a localentity known as Binance International Limited Taiwan Branch.
Binance has also taken proactive steps to collaborate withTaiwanese law enforcement agencies in the fight against cybercrime. In June,the exchange partnered with Taiwan’s Criminal Investigation Bureau to share itsexpertise in addressing digital asset-related crimes with over 200 Taiwaneselaw enforcement officers.
