Taiwan's Financial Supervisory Commission Introduces New Rules to Protect Cryptocurrency Investors

New Rules Implemented to Safeguard Investors

Taiwan's Financial Supervisory Commission (FSC) has taken steps to enhance protections for cryptocurrency investors in the country. In an effort to regulate the cryptocurrency market, the FSC has released a set of industry guidelines for virtual asset service providers (VASPs). These guidelines include rules to separate exchange's treasury assets from customer assets and mechanisms to review the listing and delisting of virtual assets. Additionally, the FSC has required foreign VASPs to obtain necessary approvals from the regulator before offering their services in Taiwan.

Encouraging Self-Regulation Among Industry Players

The FSC has also invited VASPs to promote self-regulation within the cryptocurrency industry. It has urged relevant VASP associations to develop self-regulatory norms based on the contents of the guiding principles. In line with this, major crypto exchanges in Taiwan, such as Maicoin, BitstreetX, Hoya Bit, Bitgin, Rybit, Xrex, and Shangbito, have established the Taiwan VASP Association. The association aims to support the industry's growth and work alongside regulators.

Global Crypto Trading Firms Operating in Taiwan

Besides local exchanges, global crypto trading firms like Binance, Kraken, and ByBit have also been providing services to customers in Taiwan. Binance recently applied to be registered with the FSC under the Money Laundering Control Act. Kraken and ByBit have not yet commented on the new rules implemented by the FSC.

FSC Takes Charge as Primary Regulator

This move by the FSC follows previous reports that it had drafted 10 guiding principles for the management of virtual currencies in Taiwan, with plans to limit unregistered crypto exchanges. The FSC is set to become the primary regulator of cryptocurrencies in the country by 2023.