Taiwan's cryptocurrency industry is taking steps towards establishing an industry association in collaboration with its financial regulator. This move comes ahead of the expected release of official guidelines later this week.

Cryptocurrency Sector in Taiwan Prepares for Regulatory Framework

In a collective statement, nine cryptocurrency firms have announced their intent to apply for the formation of an industry association by mid-October. To expedite the process, they have formed a dedicated working group.

Since July 2021, Taiwan has mandated virtual asset services providers (VASPs) to adhere to anti-money laundering (AML) laws, as introduced by the Financial Supervisory Commission (FSC). However, beyond these AML regulations, the broader cryptocurrency industry in Taiwan has largely operated without formal oversight. The FSC is on the verge of unveiling comprehensive guidelines pertaining to cryptocurrency trading and payments for VASPs by the end of this month.

Taiwan's Commitment to Enhancing Regulatory Compliance

In anticipation of these guidelines, cryptocurrency companies are keen to establish an industry association that can develop self-regulatory rules aligned with the forthcoming regulatory framework.

Wayne Huang, the Co-Founder and Group CEO of the Taipei-based crypto exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term XREX, expressed optimism about the FSC's impending guidelines. He believes that these guidelines could develop a new industry, providing legitimacy, oversight, a clear path for growth, and a means to gain public trust.

The working group comprises nine firms, including prominent exchanges, such as MaiCoin, BitoGroup, and ACE. Winston Hsiao, the Co-Founder and Group CRO of XREX, has taken on the role of working group convener.

A draft plan outlined by the working group indicates that once the industry association is established, it aims to encompass various types of crypto firms. This includes over-the-counter trading platforms, wealth investment platforms, custody services providers, and quantitative trading Quantitative Trading Quantitative trading is defined as a type of market strategy that relies on mathematical and statistical models to both identify and execute opportunities. Also known as quant trading, this strategy uses models that are driven by quantitative analysis, as well as advanced research and measurement to strip complex patterns of behavior into numerical values.Of note, quantitative trading eschews qualitative analysis, which evaluates opportunities based on subjective factors such as management exper Quantitative trading is defined as a type of market strategy that relies on mathematical and statistical models to both identify and execute opportunities. Also known as quant trading, this strategy uses models that are driven by quantitative analysis, as well as advanced research and measurement to strip complex patterns of behavior into numerical values.Of note, quantitative trading eschews qualitative analysis, which evaluates opportunities based on subjective factors such as management exper Read this Term companies.

As part of the forthcoming guidelines, the FSC intends to impose restrictions on offshore crypto exchanges operating in Taiwan without proper compliance registration. This move aligns with the government's commitment to ensuring regulatory compliance within the cryptocurrency sector.

Binance is looking to get AML compliant in Taiwan.

Only this week, they became the first fully licensed exchange in El Salvador.

Since crypto is considered a commodity in Taiwan, regulations are relatively lenient.

The odds are in Binance’s favor.

After all the legal battles,… pic.twitter.com/WUEpUZqDeS

— Dyor Exchange (@dyorexchange) August 11, 2023

It was reported last month that Binance is in the process of seeking registration in Taiwan to meet anti-money laundering (AML) compliance requirements as well.