Taiwan’s Crypto Regulatory Bill Clears Initial Hurdle in Legislative Yuan

Yung-Chang Chiang remarked, “We hope that the Financial Supervisory Commission can also submit their version of a draft bill to the legislature, allowing various sectors of society to further consolidate consensus during the process.”

Taiwan Moves to Rein In Offshore Crypto Activities with Proposed Legislation

The motivation behind Taiwan’s proposed crypto bill stems from unease regarding offshore crypto market dealings and the aspiration to stave off “regulatory arbitrage.” Legislators assert that cryptocurrency assets are inherently different from conventional financial instruments, necessitating unique regulations.

In tandem with this proposal, Taiwan’s Financial Supervisory Commission rolled out protective measures for cryptocurrency investors on September 26. These measures encompass various industry facets, from ensuring a clear demarcation between exchange and client assets to the assessment of digital asset listings and mandates for foreign virtual asset service providers to gain approvals from domestic regulators.

That day also saw leading crypto exchanges in Taiwan banding together to form a consortium to champion the industry’s cause.

However, the timeline for the bill’s subsequent reading remains uncertain. It might potentially be slated for January 2024, coinciding with the culmination of the current tenure of Taiwanese lawmakers.

Presently, while Taiwan mandates compliance with anti-money laundering protocols for virtual asset service providers, the broader crypto domain remains largely unchecked.