In addition to local platforms such as Maicoin, prominent global cryptocurrency trading companies like Binance, ByBit, and Kraken have also actively provided services to customers in Taiwan.
The Financial Supervisory Commission (FSC) of Taiwan is taking steps to enhance the safeguarding of cryptocurrency investors by introducing new regulations.
On September 26, the FSC outlined the key aspects of its cryptocurrency market regulation efforts, unveiling a set of industry guidelines for virtual asset service providers (VASP) operating within the nation.
Within these guidelines, the FSC outlined several industry-standard rules, such as segregating exchange treasury assets from customer assets and implementing mechanisms for listing and removing virtual assets.
Additionally, the FSC mandated that foreign VASPs obtain the necessary approvals from the regulator before offering their services in Taiwan.
“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 FSC emphasized inviting VASPs to participate in self-regulation within the cryptocurrency industry actively.
It anticipates that relevant VASP associations will establish self-regulatory standards based on the principles outlined in the guidelines.
Simultaneously, major cryptocurrency exchanges in Taiwan jointly established the Taiwan VASP Association on September 26.
This initiative involves local exchanges such as Maicoin, BitstreetX, Hoya Bit, Bitgin, Rybit, Xrex, and Shangbito.
Their primary objectives are to foster industry growth and facilitate cooperation with regulators.
In addition to local exchanges, prominent global cryptocurrency trading platforms, including Binance, have served clients in Taiwan.
In August, Binance reportedly applied for registration under the Money Laundering Control Act and the FSC.
These developments follow reports from local publications on September 7, indicating that the FSC had drafted ten guiding principles for managing virtual currencies in the country.
These principles are intended to impose restrictions on unregistered cryptocurrency exchanges. Notably, the FSC assumed the role of the primary cryptocurrency regulator in Taiwan in 2023.
