Taiwan Forms Official Crypto Association To Regulate Crypto Sector

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As a seasoned crypto investor, I’m thrilled to see Taiwan take a proactive stance in regulating the cryptocurrency sector. The formation of the Taiwan Virtual Asset Service Provider Association is a positive step towards creating a responsible digital asset economy and attracting both domestic and global participants.

The Taiwanese government has taken an active role in establishing an official association for the cryptocurrency industry. This move signifies a deliberate effort to set up a well-defined system that fosters innovation in crypto while maintaining safety and security.

The government’s establishment of this association signifies its dedication to creating strong regulations for cryptocurrencies, taking into account their distinct challenges and benefits. By convening key players in the industry, Taiwan aspires to cultivate a prudent digital asset market and project itself as a welcoming crypto environment.

Establishment of the Crypto Industry Association

As a cryptocurrency industry analyst, I’m here to share some insights about a significant development in the Taiwanese crypto scene. Recently, a group of 24 registered local crypto firms came together to establish the Taiwan Virtual Asset Service Provider Association. This self-regulatory body is spearheaded by the leaders of BitoPro and XREX, Titan Cheng and Winston Hsiao, respectively. Their mission: to create guidelines for managing and classifying virtual asset service providers within our industry.

According to the Financial Supervisory Commission, it’s vital for the growth of Taiwan’s economy that the crypto industry develops in a responsible manner. The commission’s main responsibility is to establish self-regulatory guidelines that strike a balance between the interests of the industry and consumer protection. By doing so, they aim to create a reliable environment that encourages both local and international virtual asset participants.

Current Regulatory Landscape and Future Directions

Taiwan is tightening control over the crypto sector by implementing regulations. In July 2021, crypto businesses were mandated to adhere to Anti-Money Laundering (AML) regulations. Nevertheless, a large portion of the crypto industry continues to operate without regulatory oversight. As a response, a new crypto association has emerged to establish self-regulatory frameworks.

Last month, the Taiwanese government announced proposed amendments with strict penalties. These amendments require both local and foreign cryptocurrency businesses to register for Anti-Money Laundering (AML) compliance to prevent illegal financial activities, or face imprisonment for up to two years. This move underscores the government’s firm position against such unlawful transactions.

During the month of April, Taiwan’s Financial Supervisory Commission (FSC) kept a close eye on Bitcoin Exchange-Traded Funds (ETFs), evaluating both public interest and preparedness. The FSC is set to disclose their findings imminently, potentially paving the way for Taiwanese investors to resume purchasing these overseas Bitcoin ETFs. This decision underscores the commission’s willingness to embrace crypto advancements within a regulated framework.

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2024-06-13 13:51