Taiwan’s Financial Supervisory Commission (FSC) is moving to improve protections for cryptocurrency investors by introducing new rules.
The FSC has formulated the key points of regulating the cryptocurrency market in Taiwan, releasing on Sept. 26 a set of industry guidelines for virtual asset service providers (VASP) operating in the country.
In the guidelines, the authority mentioned some common industry-wide rules like separating exchange’s treasury assets from customer assets as well as reviewing mechanisms for listing and delisting virtual assets.
The FSC also required foreign VASPs to refrain from providing its services in Taiwan without holding necessary approvals from the regulator. The FSC stated:
“Overseas virtual asset platform operators are not allowed to provide business within the territory of the country […] unless they have been registered in accordance with the law.”
The authority also said that VASPs are invited to promote self-regulation in the cryptocurrency industry, as relevant VASP associations are expected to formulate self-regulatory norms based on the contents of the guiding principles.
The guidelines came in conjunction with major crypto exchanges in Taiwan announcing the establishment of a joint self-regulatory association. On Sept. 26, local exchanges like Maicoin, BitstreetX, Hoya Bit, Bitgin, Rybit, Xrex and Shangbito officially formed Taiwan VASP Association, aiming to promote the industry and help regulators.
Related: Hong Kong to list ‘suspicious’ crypto platforms in wake of JPEX scandal
Apart from local exchanges, major global crypto trading firms like Binance have also been serving customers in Taiwan. At the time of writing, Kraken exchange says that it offers “full services to clients living in Taiwan,” while ByBit exchange supports Visa and Mastercard payments in countries like Taiwan, according to its website.
In August, Binance crypto exchange reportedly applied to be registered in Taiwan under the Money Laundering Control Act and the FSC.
Kraken and ByBit did not immediately respond to Cointelegraph’s request for comment.
The news comes shortly after local publications reported on Sept. 7 that the FSC created a draft of 10 guiding principles for the management of virtual currencies in the country, planning to restrict unregistered crypto exchanges. The framework is coming on the heels of the FSC becoming the primary regulator of cryptocurrencies in the island country in 2023.
Magazine: Asia Express: China expands CBDC’s tentacles, Malaysia is HK’s new crypto rival