Taiwan has floated the idea of introducing a fresh category in its regulatory framework, potentially allowing cryptocurrency businesses to set up industry associations. The objective behind this is to encourage the creation of self-governance rules within the sector.
On Thursday, the Ministry of Economic Affairs revealed its intentions to modify the Standards of Classification of Commercial Group regulations to incorporate a section dedicated to digital asset services.
An economic ministry representative shared details about the proposed business category. It encapsulates a range of activities in the cryptocurrency realm, from cryptocurrency exchange services to facilitating transfers, crypto storage solutions, and support regarding cryptocurrency issuance and sales.
The representative further elaborated that once this category is formally integrated into the regulatory structure, cryptocurrency enterprises can then establish industry associations. Public feedback is currently being gathered, and the ministry plans to finalize these changes in collaboration with the Ministry of the Interior by late October.
Since July 2021, when the Financial Supervisory Commission (FSC) introduced its anti-money laundering regulations, virtual asset service providers (VASPs) in Taiwan have been mandated to adhere to the nation’s anti-money laundering laws. Beyond this, the cryptocurrency sector remains largely unmonitored.
The establishment of an industry association would empower crypto businesses to devise their own regulatory standards.
Binance, the globally renowned cryptocurrency exchange, has reportedly begun the process to register for AML compliance with the FSC, as recently informed.
Upcoming Regulatory Directives
On another note, the FSC of Taiwan, which was designated in March as the primary authority overseeing the cryptocurrency landscape, is actively drafting comprehensive guidelines about cryptocurrency trading and payments for VASPs.
An FSC spokesperson revealed that the agency is gearing up to unveil these guidelines for VASPs by the month’s end.
