Taiwan Bans Unregistered Foreign Crypto Exchanges
BITmarkets Team
Sep 29, 2023
Taiwan's Financial Supervisory Commission (FSC) is introducing new laws to protect cryptocurrency investors.
On September 26, the FSC released industry guidelines for virtual asset service providers (VASP) operating in Taiwan, outlining the important principles for regulating Taiwan's cryptocurrency business.
The authorities stated some common industry-wide regulations in the guidelines, such as segregating exchange treasury assets from client assets and assessing processes for listing and delisting virtual assets.
The FSC also required overseas VASPs to refrain from offering services in Taiwan unless they had the requisite regulatory authorization. According to the FSC:
“Overseas virtual asset platform operators are not allowed to provide business within the territory of the country [...] unless they have been registered in accordance with the law.”
The authorities also stated that VASPs are encouraged to foster self-regulation in the cryptocurrency industry, with relevant VASP associations urged to develop self-regulatory standards based on the guiding principles' contents.
The recommendations were issued in conjunction with the announcement of a cooperative self-regulatory association by major cryptocurrency exchanges in Taiwan.
Local exchanges such as Maicoin, BitstreetX, Hoya Bit, Bitgin, Rybit, Xrex, and Shangbito officially established the Taiwan Virtual Asset Platform and Transaction Business Association on September 26 to promote the industry and assist authorities.
Sources:
https://cointelegraph.com/news/taiwan-bans-operation-unregistered-foreign-crypto-exchanges