In September 2024, Taiwan’s Financial Supervisory Commission (FSC) intends to present a new draft regulation on digital assets.
According to a March 4 UDN news report, Huang Tien-mu, chairman of the FSC, said the upcoming bill aims to provide investors with security and better regulation for the digital asset market.
Taiwan is introducing new rules for digital assets.
In October, Taiwanese lawmakers presented a bill on virtual asset management to the unicameral parliament. This law aims to provide better protection for customers and proper oversight of the industry. It includes provisions for fines for unlicensed virtual asset service providers (VASPs) ranging from two million Taiwan dollars to twenty million Taiwan dollars.
TheFSC has banned foreign VASPs from providing services in Taiwan without obtaining the necessary approvals from the regulator. The country’s major cryptocurrency exchanges formed a self-regulatory association to work with regulators before the regulations were introduced.
In a recent report, Chairman Huang Tianmu said the FSC intends to propose a bill on virtual currencies this September. The measure aims to increase investor protection and improve the system for regulating virtual currencies.
Huang stressed that stricter regulations are necessary to stop fraud related to digital currencies. He warned that traders who try to defraud investors could face severe administrative penalties.
He further expressed concern that digital assets could pose a threat to the stability of the legacy financial system, highlighting the growing links between digital assets and traditional financial systems. Accordingly, the commission intends to develop regulations to safeguard the stability of traditional financial systems from the risks associated with digital assets.
In addition, Huang Tianmu addressed concerns about the misuse of virtual currencies for fraudulent activities. He warned that currency traders at home and abroad could face severe administrative penalties if found guilty.
In addition, the Taiwan Chamber of Commerce is expected to publish a study on ETFs to be traded on Bitcoin exchanges in April. Deputy Director Gao Jingping said Taiwan is considering adopting Bitcoin ETFs under its regulatory authority, but cautioned against investing in foreign exchange-traded products based on cryptocurrencies.
Taiwan likely to mainstream bitcoin ETFs
Local media are reporting that Taiwan’s FSC will closely monitor Bitcoin ETFs to assess their potential and public demand. To determine the future of Bitcoin ETFs in Taiwan, the FSC intends to publish a study based on these assessments in April. Taiwanese investors may start buying foreign Bitcoin ETFs if the results are positive.
The results of the study, which will be published in April, will offer Taiwanese investors more investment opportunities, diversifying the market. The initiative comes at a time when demand for Bitcoin ETFs has reached its highest peak ever. Last week saw strong demand for Bitcoin ETFs, reflecting investors’ increased appetite for risk. This contributed to the Bitcoin price reaching the long-awaited $65,000 level.
There are currently about ten currency traders in Taiwan that specialize in trading virtual currencies. Investors have been advised by the regulator to protect their funds from fake schemes and avoid unregulated foreign investment platforms.
Taiwan’s Financial Supervisory Commission (FSC) also published industry guidelines for VASPs in September 2023. The FSC does not allow foreign VASPs to provide services in Taiwan without obtaining the required approvals from the regulator.
on September 26, local exchanges such as MaiCoin, BitstreetX, Hoya Bit, Bitgin, Rybit, Xrex and Shangbito joined forces to form the Taiwan Virtual Asset Platform and Transaction Business Association. Their goal is to cooperate with regulators and support the cryptocurrency industry.
