Taiwan to Introduce Digital Currency Laws in September

Taiwan to Introduce Digital Currency Laws in September

Taiwan to Introduce Digital Currency Laws in September

The Financial Supervisory Commission in Taiwan plans to introduce new legislation for digital assets in September 2024.

The Financial Supervisory Commission (FSC) revealed that it will present a new draft of legislation for digital assets in Taiwan in September 2024.

Huang Tien-mu, chairman of the Financial Stability Commission stated in a news report published by UDN on March 4 that the forthcoming draft bill will establish regulations for digital asset markets that are more efficient and will also ensure the safety of investors.

In addition, the speech warned investors about the possible fraud risks linked to digital currencies. It cautioned that merchants who attempt to mislead investors will be subject to stringent administrative sanctions.

During his address, Huang stressed the growing connectivity between digital assets and the traditional financial system, highlighting that the former threatens the financial system.

In addition, the committee will work on proposing regulations that would safeguard the stability of the traditional financial system against the dangers posed by digital assets.

On October 25, legislators from Taiwan presented the Virtual Asset Management Bill to the national parliament, composed of only one chamber.

The measure aims to “properly supervise” the sector and to provide “better protection” for customers. Additionally, the law proposed that virtual asset service providers (VASPs) that are not licensed would face a fee ranging from two million Taiwanese dollars (about $60,000) to twenty million Taiwanese dollars (approximately $600,000).

Taiwan Chamber of Commerce to release Bitcoin ETF study

In addition, according to Gao Jinping, the deputy director of the Warranty Bureau, Taiwan’s Chamber of Commerce will publish a study on Bitcoin exchange-traded funds (ETFs) in April.

In addition, Tien-mu mentioned that Taiwan is contemplating the possibility of including spot Bitcoin exchange-traded funds (ETFs) in its regulatory framework.

However, he cautioned market players against investing in exchange-traded products based on foreign cryptocurrencies. It is against the law for overseas virtual assistant service providers (VASPs) to offer their services in Taiwan without first receiving the requisite licenses from the relevant regulatory body.

Following their collaboration on September 26, 2023, to join a self-regulatory group, the largest cryptocurrency exchanges in the country subsequently developed the guidelines.

Several local exchanges, such as BitstreetX, Hoya Bit, Bitgin, Rybit, Xrex, and Shangbito, have come together to assist the cryptocurrency business and collaborate with regulatory authorities.

On November 9, 2023, the Financial Services Commission (FSC) granted Cathay Securities the first security token offering license available in the country. This license enables the company to issue tokenized green bonds valued at $930,000 every six months. 

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