Taiwan’s Crypto Legislation: Fast-Tracked Draft

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Advancing Regulation for Offshore Exchanges

Taiwan is accelerating its regulatory efforts in the cryptocurrency domain. Lawmakers in the country are diligently working towards creating an initial draft of a specialized law aimed at offshore crypto exchanges by the end of November 2023.

Addressing a Growing Concern

Expressing deep concern regarding activities in offshore crypto markets, Yung-Chang Chiang, an official within Taiwan’s Legislative Yuan, emphasized the compelling necessity of a specialized law to govern crypto-related businesses effectively. The distinctive nature of crypto assets unequivocally demands tailored regulations, setting them apart significantly from conventional financial products.

Public Discourse and Industry Association

To facilitate the drafting process, a public hearing was held on October 6th within the Taiwanese parliament. This inclusive discussion involved key stakeholders, such as digital asset service providers and academics, to deliberate on the proposed draft. Concurrently, major cryptocurrency exchanges operating in Taiwan united to form an association, showcasing a collaborative approach to advancing industry interests.

Progressive Guidelines Enhancing Investor Protection

Continuing with this positive momentum, Taiwan’s Financial Supervisory Commission took a notable step on September 26th, releasing comprehensive guidelines aimed at fortifying protections for cryptocurrency investors. These guidelines span a wide array of rules governing various facets of the crypto industry. Notably, they focus on crucial aspects such as segregating exchange treasury assets from customer funds and establishing clear-cut protocols for reviewing both asset listings and delistings. Additionally, the guidelines stipulate that foreign virtual asset service providers must obtain necessary approvals from local regulatory authorities to offer services within Taiwan.

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