Taiwan Moving Forward with Plans to Regulate Cryptocurrency Industry
Taiwan is moving forward with plans to regulate the cryptocurrency industry through a draft proposal special Law for first reading at the end of November, according to a representative.
Yong Chang Qiang, Member of Taiwan parliament, said in an interview with The Block published on October 6 that custom encryption asset this measure is necessary to supervise cryptocurrency companies, arguing that cryptocurrencies are different from traditional financing and requires dedicated oversight.
Chiang held a public session to discuss the draft proposal for the law. It will require all crypto platforms operating in Taiwan to receive regulatory approval. Without a permit, regulatory bodies can order them to cease operations.
Currently, it only requires Taiwan virtual asset service providers to comply with anti-money laundering laws. The rest of the crypto industry remains highly disorganized. Chiang said that many cryptocurrency platforms still do not declare their anti-money laundering compliance.
The law is unlikely to be passed before the current legislative session ends this year, but Chiang added that he expects it to occur sometime after mid-2024.
The push for cryptocurrency regulation comes as concerns grow over regulatory arbitrage and external exchanges. Cryptocurrency companies say they still struggle to obtain banking services in Taiwan, although regulators require banks to service this industry.
Industry members argue that compliance is necessary, however, it should be offered on a gradual basis based on company size. They recommend small platforms are regulated by industry formulation rules after registration, while large companies should obtain permits and apply for financial licenses.
