Cryptocurrency Regulation in Taiwan: A Phased Approach for Rapid Development

Bittime - The blockchain industry in Taiwan is growing rapidly, with applications emerging in various sectors. However, this rapid growth also brings challenges such as financial fraud and regulatory uncertainty. To address this issue, the Taiwanese government has taken a gradual approach to regulating crypto assets.

Initial Steps: Anti-Money Laundering Measures

The foundation for crypto regulation in Taiwan began in June 2021. The Executive Yuan appointed the Taiwan Financial Supervisory Commission (FSC) as the anti-money laundering ( AML ) authority for virtual currency trading platforms and businesses. 

This move aims to combat financial crime and terrorism in the crypto space. Furthermore, the FSC issued “Anti-Money Laundering and Anti-Terrorism (AML&CFT) Measures for Virtual Currency Trading Platforms and Businesses,” which establishes a framework for preventing money laundering activities. By the end of December 2023, 25 companies had successfully passed the FSC's AML/CFT review.

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Legislative Discussion and International Benchmarking

Recognizing the evolving nature of virtual assets, the Legislative Yuan proposes to formulate a special regulatory mechanism for this sector in early 2023. The proposal emphasizes the inclusion of virtual assets in the central government budget. 

Later, the Executive Yuan confirmed that the FSC would be the primary regulator for virtual assets. This regulatory approach will take inspiration from international trends observed in the European Union, Singapore, Japan and South Korea. The goal is to progressively improve customer protection on Taiwanese virtual asset platforms.

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Diversification Challenges and VASP Guidelines

The wide range of virtual asset products, including NFTs , stablecoins , and payment solutions, poses a challenge for regulators. Determining the entities responsible for overseeing these various applications is still ongoing. 

In September 2023, the FSC released its long-awaited “Guiding Principles for Virtual Asset Platforms and Businesses (VASP),” with a focus on AML oversight and customer protection. This guide outlines important steps for VASPs, such as:

• Strengthen the management of virtual asset issuance
• Implement a review process for listing and delisting virtual assets
• Ensure strict separation between platform assets and customer assets
• Promote fair and transparent transactions
• Improve contract formation, advertising practices, and complaint handling
• Building a robust operating system, information security protocols, and hot/cold wallet management mechanisms
• Implement comprehensive information disclosure procedures
• Strengthen internal controls and institutional audits
• Apply AML supervision equally to individual currency traders and legal entities
• Prohibit foreign currency traders from illegal business solicitation activities

Moving Forward: A Balanced Approach

Taiwan's approach to crypto regulation prioritizes a measured and balanced approach. By prioritizing AML measures and setting clear guidelines for VASPs, the government aims to encourage responsible innovation in the virtual assets space while protecting consumer interests. 

The focus on international benchmarks in their regulatory framework further demonstrates Taiwan's commitment to participating in the global conversation around cryptocurrencies.

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How to Buy Crypto on Bittime

You can buy and sell crypto assets in an easy and safe way via  Bittime .  Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.

Monitor price chart movements  of Bitcoin (BTC) ,  Ethereum (ETH) ,  Solana (SOL)  and other cryptos to find out today's crypto market trends in real-time on Bittime.

Also read:

Crypto Licensing Crisis in Hong Kong, Many Exchanges Resigning and Leaving?

MiCA: Unraveling Crypto Asset Regulation in Europe

Cryptocurrencies in Scandinavia: Floating Regulations and Future Hopes

DISCLAIMER:  This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.