Taiwan Plans Special Crypto Law by November 2023

According to a report from the Block, Taiwanese legislators intend to release the first text of a special law by November 2023’s end.

Yung-Chang Chiang, a Taiwanese Legislative Yuan official, stated in an interview that he expects the first draft to be available for reading by parliament by November’s end or sooner and that such a law is “necessary” to regulate crypto-related businesses.

This comes at a time when Taiwanese legislators are increasingly concerned about activity in offshore markets and are attempting to prevent “regulatory arbitrage.”

Chiang asserts that crypto assets are distinct from conventional financial instruments and must be governed by a special law.

On October 6, he held a public hearing in the Taiwanese parliament with digital asset service providers, academics, and others from the industry to discuss the proposed legislation.

This is in response to guidelines issued by Taiwan’s Financial Supervisory Commission (FSC) on September 26 to enhance investor protections for cryptocurrencies.

The guidelines included industry-wide rules, such as segregating exchange treasury assets from customer assets, as well as mechanisms for reviewing the listing and delisting of digital assets.

In addition, the regulations stipulate that foreign service providers of virtual assets cannot offer their services in Taiwan without the sanction of local regulatory authorities.

On the same day, prominent cryptocurrency exchanges operating in Taiwan formed an association to advance industry interests.