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 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 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.
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.
