The Financial Supervisory Commission (FSC) of Taiwan aims to propose updated digital asset regulations in September 2024.
Huang Tien-mu, FSC chairman, stated the draft bill aims to enhance regulations for digital asset markets and ensure investor safety, according to a March 4 report by UDN.
Taiwan Plans New Digital Asset Regulations
In October, Taiwanese legislators introduced the Virtual Asset Management Bill to the parliament, aiming to provide better protection for customers and properly supervise the industry. It includes fines ranging from two million to 20 million Taiwanese dollars for unlicensed virtual asset service providers (VASPs).
Foreign VASPs are prohibited from offering services in Taiwan without approvals from the FSC. These regulations came about after major cryptocurrency exchanges formed a self-regulatory association to collaborate with regulators.
Chairman Huang Tianmu mentioned the FSC intends to propose a draft bill targeting virtual currencies in September. This aims to enhance investor protection and regulate the virtual currency business more effectively.
Huang emphasized the need for stricter regulations to address potential fraud risks associated with digital currencies. He warned merchants attempting to defraud investors would face strict administrative penalties.
He also expressed concerns about the increasing interconnection between digital assets and the traditional financial system, stating digital assets pose risks to the stability of the legacy financial system. The committee aims to develop laws to protect traditional financial systems from digital asset-related risks.
Furthermore, Huang Tianmu addressed concerns about the misuse of virtual currencies for fraudulent activities, warning both domestic and foreign currency traders would face severe administrative penalties if found guilty.
Title: Taiwan Considers Mainstream Bitcoin ETFs
Taiwanโs Chamber of Commerce is set to release a study on Bitcoin exchange-traded funds (ETFs) in April. Deputy director Gao Jingping mentioned Taiwan is considering accepting spot Bitcoin ETFs under its regulatory purview but cautioned against investing in foreign crypto-based exchange-traded products.
The FSC of Taiwan will closely monitor Bitcoin ETFs to evaluate their potential and gauge public demand. The FSC plans to release research findings in April to determine the future of Bitcoin ETFs in Taiwan. If findings are positive, Taiwanese investors may resume purchasing overseas Bitcoin ETFs.
The release of research findings in April will provide Taiwanese investors with more investment options, diversifying the market. This initiative comes as global demand for Bitcoin ETFs reaches an all-time high. Last week, significant demand for Bitcoin ETFs led to Bitcoinโs price reaching the long-awaited $65,000 mark.
Approximately ten currency traders in Taiwan specialize in virtual currency transactions. The regulator advises investors to safeguard funds and avoid fraudulent schemes by refraining from unregulated foreign investment platforms.
In September 2023, Taiwanโs Financial Supervisory Commission (FSC) released industry guidelines for VASPs, prohibiting foreign VASPs from providing services in Taiwan without necessary approvals.
These rules were established as major cryptocurrency exchanges in Taiwan 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, aiming to support the crypto industry and collaborate with regulators.