Taiwan’s Ministry of Economic Affairs (MOEA) Changes Crypto Business Category. Taiwan’s Financial Supervisory Commission (FSC) will serve as the core authority responsible for legal oversight. This was done with the sole intent of cracking down on crypto in Taiwan
Taiwan’s Plans to Crack Down on Cryptocurrency
After a long wait, Taiwanese authorities have retaliated, changing the game for crypto businesses in the region.
After removing crypto businesses from the “software design services” category, Taiwan’s Ministry of Economic Affairs (MOEA) announced the switch at the most recent Cabinet meeting, moving them to the “finance, insurance, and real estate” category as “virtual currency platforms and trading businesses.”
As a result of this change, the Financial Supervisory Commission (FSC) will now be the primary authority in charge of legal oversight, as well as defining and modifying taxation laws for bitcoin enterprises.
This was done solely to crack down on cryptocurrency in Taiwan, as the country’s legislative body has already begun taking steps to close crypto loopholes in order to better protect local investors and consumers.
Taiwan opts for a middle path when it comes to cryptocurrency regulation
However, given the actions of FSC Chairman Huang Tien-mu at the beginning of this month, this move should not come as a surprise.
He had met with “key ministries” and government institutions in Taiwan, including the Central Bank, the Ministry of Finance, the Ministry of Economy, and the National Development Council, to discuss possible regulatory action for “the management” of crypto assets
According to the China Times, many MPs have expressed concern about cryptocurrency volatility, emphasizing that cryptocurrency can be easily “manipulated” by “major powers.”
As a result, these lawmakers came to the conclusion that virtual currencies should be classified as “unsuitable for sale in Taiwan” and “should be controlled” by the government.
In response to calls for crypto crackdowns, the FSC chief argued that policies from both worlds should be implemented, including international governments’ “wait-and-see” approach to crypto market supervision, as well as hints at the need for regulations, since crypto is not classified as a “financial asset,” but rather as a “general commodity.”
“It is correct that no special [regulatory] authority has control over virtual currency in Taiwan,” he stated.