In September 2024, the Financial Supervisory Commission (FSC) of Taiwan plans to submit a revised draft of the nation’s digital asset legislation.
According to Huang Tien-mu, chairman of the FSC, the future draft bill will seek to ensure investor safety and establish more effective regulations for digital asset markets.
Legislators from Taiwan presented the Virtual Asset Management Bill to the unicameral parliament in October. The purpose of this measure is to adequately oversee the sector and offer enhanced protection for consumers. It specifies penalty for unregistered virtual asset service providers (VASPs) that range from two million to twenty million Taiwanese dollars.
The FSC has made it illegal for overseas VASPs to offer services in Taiwan without first securing the required regulatory authorization. Following the formation of a self-regulatory group by the nation’s largest cryptocurrency exchanges to work with regulators, these restrictions were put into place.
Chairman Huang Tianmu declared that the FSC plans to present a draft bill aimed at virtual currencies in September of this year.
A research report on Bitcoin exchange-traded funds (ETFs) is scheduled for release in April by Taiwan’s Chamber of Commerce. Although Taiwan is thinking of allowing spot Bitcoin ETFs under its regulatory jurisdiction, deputy director Gao Jingping issued a warning to investors about investing in overseas cryptocurrency-based exchange-traded products.
Crypto Might Become Mainstream in Taiwan
The FSC of Taiwan will keep a close eye on Bitcoin ETFs in order to assess their potential and determine public demand, according to reports from local media. In order to decide the future of Bitcoin ETFs in Taiwan, the FSC intends to publish research based on these evaluations in April. Taiwanese investors may be permitted to resume buying foreign Bitcoin ETFs if the results are favourable.
Taiwanese investors will have more possibilities for investments when research findings are released in April, which will diversify the market. The launch of this programme coincides with an unprecedented surge in demand for Bitcoin ETFs worldwide. Due in large part to investors’ increased risk appetites, there was a notable demand for Bitcoin ETFs last week, which helped Bitcoin hit the much anticipated $65,000 level.
As of right now, Taiwan has about 10 currency brokers who specialise in virtual currency transactions. Investors are encouraged by the regulator to stay away from unregulated international investment platforms in order to protect their money and steer clear of fraudulent schemes.
Taiwan’s Financial Supervisory Commission (FSC) also published industry standards for VASPs in September 2023. The FSC forbids foreign VASPs from operating in Taiwan without first securing the required regulatory authorization.
The regulations were made in response to the formation of a self-regulatory association by Taiwan’s largest bitcoin exchanges. Local exchanges like BitstreetX, Hoya Bit, Bitgin, Rybit, Xrex, Shangbito, and MaiCoin came together on September 26 to form the Taiwan Virtual Asset Platform and Transaction Business Association. They collaborate with regulators and seek to assist the cryptocurrency sector.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
