Taiwan Proposes Crypto Regulations for Foreign Exchanges

As part of its forthcoming guidance for virtual asset service providers (VASPs), the East Asian nation of Taiwan reportedly intends to impose restrictions on unregistered foreign crypto exchanges functioning within its borders.

The Central News Agency reported on September 7 that the Financial Supervisory Commission (FSC) of Taiwan had drafted ten guiding principles for the administration of virtual currencies in the nation.

The proposed guidelines require operators to establish criteria for evaluating listing and delisting and bolster information disclosure.

In addition, they stipulate that VASPs should implement measures to prevent money laundering and mandate separate custody of customer and platform assets. The FSC has ten principles, one of which prohibits foreign VASPs from unlawfully soliciting business in Taiwan.

The FSC proposed that foreign crypto platforms that are not registered in Taiwan and do not comply with its anti-money laundering laws should not solicit business in Taiwan or from its citizens.

The report emphasized that the FSC will refer to international practices and will consider amending its regulations in the future if necessary. The report indicates that an official announcement is anticipated by the end of September.

In March, FSC Chairperson Huang Tien-mu announced that the FSC would become Taiwan’s primary cryptocurrency regulator.

The official emphasized on March 20 that the FSC’s forthcoming regulatory framework for cryptocurrencies will include significant policies and rules, such as the separation of company assets and customer funds.