A total of nine crypto exchange platforms in Taiwan have come together to form an industry association. The objective is to assist the relevant authorities in drafting regulations that suit the industry and the region mutually. The development comes ahead of the time when the FSC, or Financial Supervisory Commission, is planning to share the guidelines for trading and payment via VASPs, or Virtual Asset Service Providers.
All crypto exchanges have issued a joint statement informing the community that they are contemplating submitting an application to establish the association in mid-October. All platforms will collaborate to assist authorities in accelerating the process. Some of the exchange platforms that are a part of the association are BitoGroup, MaiCoin, and ACE.
Another objective of setting up an association of all the crypto ventures in Taiwan is to come up with self-supervisory rules that will be based on the guidelines issued by the FSC. While there is no information about including more crypto ventures in the future, the assumption still stands that the association will be more than happy to include any other platform that intends to operate in the region in a compliant manner.
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One of the requirements that they will have to fulfill pertains to anti-money laundering. Taiwan has already asked the existing ventures to follow the guidelines and rules on AML. In July 2021, the FSC drafted and implemented the laws. What makes it important for a crypto venture to follow AML laws is the fact that not following them will largely impact the industry, with all of them losing their regulatory safeguards. Meaning, the industry will stay under an unregulated roof in Taiwan.
Wayne Huang from XREX has showcased a sense of confidence in the initiative that the FSC has taken. The Group’s chief executive officer has said it will give birth to a new industry while providing it with the required legitimacy and oversight. Wayne believes that the progress will also give the industry an accelerated means to gain the general public’s trust.
Moving forward, the regulatory authority in Taiwan is planning to restrict the operations of offshore crypto exchange platforms without acquiring proper compliance registration. A government official with the media has confirmed the update.
Simply put, any offshore crypto venture that wants to enter Taiwan and operate in the region will have to acquire compliance registration. Without that, their operations will be non-compliant and subject to relevant laws.
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As per recent developments, Taiwan has published guidelines to oversee the operations and registrations of offshore crypto companies. It covers all the VASPs and seeks to ensure they follow the guidelines. The FSC has said in a media statement that domestic crypto ventures have to ensure the separation and custody of the company’s and its customers’ assets.
