The Financial Supervisory Commission (FSC) of Taiwan has announced its intention to propose a new draft of digital asset regulations for the country in September 2024.
The upcoming draft bill will aim to create more effective regulations for digital asset markets and to assure the safety of investors, said Huang Tien-mu, chairman of the FSC, according to a March 4 news report by UDN.
Taiwan to Set New Digital Asset Laws
In October, Taiwanese legislators introduced the Virtual Asset Management Bill to the unicameral parliament. This bill aims to provide better protection for customers and to properly supervise the industry. It includes provisions for fines ranging from two million Taiwanese dollars to 20 million Taiwanese dollars for unlicensed virtual asset service providers (VASPs).
The FSC has prohibited foreign VASPs from providing services in Taiwan without obtaining the necessary approvals from the regulator. These regulations were established after major cryptocurrency exchanges in the country formed a self-regulatory association to collaborate with regulators.
According to the recent report, Chairman Huang Tianmu stated that in September of this year, the FSC intends to propose a draft bill targeting virtual currencies. This measure aims to enhance investor protection and more effectively regulate the virtual currency business.
Huang highlighted the need for stricter regulations to address potential fraud risks associated with digital currencies. He warned that merchants attempting to defraud investors would face strict administrative penalties.
He also highlighted the increasing interconnection between digital assets and the traditional financial system, expressing concerns that digital assets pose risks to the stability of the legacy financial system. As a result, the committee intends to develop laws to protect the stability of traditional financial systems from the risks associated with digital assets.
Furthermore, Huang Tianmu addressed concerns about the misuse of virtual currencies for fraudulent activities, warning that both domestic and foreign currency traders would face severe administrative penalties if found guilty.
Additionally, Taiwan’s Chamber of Commerce is set to release a study on Bitcoin exchange-traded funds (ETFs) in April. Deputy director Gao Jingping stated that Taiwan is considering accepting spot Bitcoin ETFs under its regulatory purview but cautioned against investing in foreign crypto-based exchange-traded products.
Taiwan to Likely Make Bitcoin ETFs Mainstream
According to reports from local media, the FSC of Taiwan will closely monitor Bitcoin ETFs to evaluate their potential and gauge public demand. The FSC plans to release research based on these assessments in April to determine the future of Bitcoin ETFs in Taiwan. If the findings are positive, Taiwanese investors may be able to resume purchasing overseas Bitcoin ETFs.
The release of research findings in April will provide Taiwanese investors with more investment options, thereby diversifying the market. This initiative comes at a time when global demand for Bitcoin ETFs is at an all-time high. Last week, there was significant demand for Bitcoin ETFs, reflecting investors’ heightened risk appetites and contributing to Bitcoin’s price reaching the long-awaited $65,000 mark.
Currently, there are approximately ten currency traders in Taiwan specializing in virtual currency transactions. The regulator has advised investors to safeguard their funds and avoid fraudulent schemes by refraining from unregulated foreign investment platforms.
In September 2023, Taiwan’s Financial Supervisory Commission (FSC) also released industry guidelines for VASPs. The FSC prohibits foreign VASPs from providing their services in Taiwan without obtaining the necessary approvals from the regulator.
The rules were created as major cryptocurrency exchanges in Taiwan have formed a self-regulatory association. On September 26, local exchanges such as MaiCoin, BitstreetX, Hoya Bit, Bitgin, Rybit, Xrex, and Shangbito joined forces to create the Taiwan Virtual Asset Platform and Transaction Business Association. They aim to support the crypto industry and work with regulators.
The post FSC Plans New Digital Asset Regulations Draft for Taiwan in September 2024 appeared first on Cryptonews.
