Taiwan is set for New Crypto Rules in November
- A Binance representative claims that crypto companies face difficulties in interacting with banks in Taiwan.
- Taiwan’s Financial Supervisory Commission recently released a set of guidelines aimed at safeguarding crypto activities.
- Foreign crypto service providers are required to register with the appropriate regulators before operating in Taiwan.
Taiwan has a budding crypto community, but the lack of precise rules has been a concern for lawmakers. However, all that is set to change as authorities are set to introduce some new laws at the end of November 2023.
An official in Taiwan’s Legislative Yuan, Yung-Chang Chiang, believes the draft of the law will be available for parliament by the end of November or earlier and that such a law is required to control crypto-focused organizations.
The push for the law coincides with Taiwan’s growing concerns about activities in offshore markets and trying to prevent “regulatory arbitrage.” Lawmakers believe that crypto assets must be managed by specific policies due to their differences from regular financial services and products.
Interestingly, Taiwan’s Financial Supervisory Commission recently released a set of guidelines aimed at safeguarding crypto activities. The guidelines included rules on examining the listing and delisting of digital assets as well as requirements for separating customer assets from those held in exchange treasuries.
Furthermore, the laws prevent foreign virtual asset service providers from offering their services in Taiwan without the required authorizations from national regulatory bodies.
Several major crypto organizations see Taiwan as a region with appealing potential for growth. However, the lack of defined rules has been a concern. For example, Damien Ho, a representative of global partnerships at Binance, recently claimed crypto companies are unable to get banking services in Taiwan, limiting their operations in the region.
While Taiwan’s financial regulators have asked banks not to treat crypto companies as high-risk, Ho claimed that crypto companies still faced difficulties with banks.
Ho said in a statement:
We also boldly suggest that the Taiwan government should encourage some private or public banks to become more crypto-friendly and handle [crypto firms’] relevant business. This can help crypto businesses develop in a more regulated and effective manner.
Crypto exchanges in Taiwan recently formed an alliance to represent their interests in the region.
Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.
