Taiwan Mobile Co. is reportedly in early talks with local crypto platforms, including XREX Inc., for potential collaborations or investments as Taiwan prepares to issue new rules for digital assets.
Taiwan Mobile Co., a prominent telecom service provider in Taiwan, is exploring opportunities for collaboration with local crypto platforms as the island’s regulatory landscape for digital assets is set to change soon.
According to sources with knowledge of the matter, the company is in preliminary discussions with crypto firms regarding prospective alliances or investments.
One of the crypto firms that Taiwan Mobile is in talks with is XREX Inc., a Taipei-based fintech and blockchain company that provides a secure and efficient platform for cryptocurrency transactions.
Wayne Huang, co-founder of XREX, Huang anticipates that larger institutions will enter the Web3 sector as it matures and regulatory clarity emerges.
He added that XREX is keen to partner with telecom enterprises to drive adoption.
Regulatory Changes in Taiwan
In March, Taiwan appointed the Financial Supervisory Commission (FSC) as the chief regulator for virtual-asset service providers. The FSC is expected to introduce detailed guidelines by the end of September.
The new rules will likely cover licensing, anti-money laundering, consumer protection, and taxation issues.
The FSC will not regulate non-fungible tokens (NFTs), as they are still in their early stages as an asset class and, thus, too early to regulate them.
Taiwan has two financial regulators: the Central Bank of the Republic of China (Taiwan’s official name) and the FSC.
The Central Bank is in charge of monetary policy and foreign currency rules, while the FSC is in charge of everything from banking regulation to securities and futures trading to anti-money laundering.
Taiwan Mobile may be “exploring the possibility of entering the fintech business, like what the Japanese telcos have been doing,” according to Bloomberg Intelligence senior industry analyst Marvin Lo.
The company may view crypto as a way to diversify its revenue streams and attract new customers.
Taiwan Mobile said it is “open to any potential opportunities” but declined further comment. According to the sources, the company has not made any decisions, and a deal may not materialize.
The crypto industry is trying to recover from a market crash last year that sparked a series of regulatory actions worldwide.
Hong Kong and Dubai are among the jurisdictions trying to develop regulatory frameworks to protect customers while attracting investment from digital-asset businesses.
