Taiwan’s Financial Supervisory Commission (FSC) is improving the protection of cryptocurrency investors by introducing new rules.
FSC has customized Key points of Taiwan’s cryptocurrency market supervision, on September 26, it released a set of industry guidelines for virtual asset service providers (VASPs) operating in Taiwan.
In the guidance, the regulator mentioned some common industry rules, such as the separation of exchanges’ inventory assets from customer assets, as well as review mechanisms for the listing and delisting of virtual assets.
The FSC also requires foreign VASPs not to provide services in Taiwan without obtaining the necessary approvals from regulatory agencies. FSC said:
“Others of overseas virtual asset platforms are not allowed to conduct business within the country unless they are registered in accordance with the law (…).”
The regulatory agency also stated that VASPs are invited to promote self-regulation in the cryptocurrency industry, and the relevant VASP associations will formulate self-regulatory norms based on the content of the guiding principles.
The guide joins Taiwan’s major cryptocurrency exchanges in announcing the formation of a joint self-regulatory association. On September 26, local exchanges such as Macoin, BitstreetX, Hoya Bit, Bitgin, Rybit, Xrex, and Shangbito officially established the Taiwan VASP Association to promote industry development and assist regulatory agencies.
related: Hong Kong to list ‘suspicious’ cryptocurrency platforms after JPEX scandal
In addition to local exchanges, major global cryptocurrency trading companies such as Binance have also been providing services to Taiwanese customers.At the time of writing, Kraken exchange explain It provides “full services to clients residing in Taiwan,” while ByBit Exchange support According to its website, Visa and Mastercard can be used for payments in countries such as Taiwan.
In August, Binance cryptocurrency exchange reportedly applied to register in Taiwan under the Money Laundering Control Act and the FSC.
Kraken and ByBit did not immediately respond to Cointelegraph’s request for comment.
Not long ago, local media reported on September 7 that the FSC had developed 10 draft guidelines for the country’s virtual currency management and planned to restrict unregistered cryptocurrency exchanges. The framework comes after the FSC became the island nation’s lead regulator for cryptocurrencies in 2023.
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