In a significant move towards regulatory oversight, Taiwan’s cryptocurrency sector has established an industry association under governmental guidance. This marks a pivotal moment as Taiwan progresses towards regulating the burgeoning crypto industry.
A total of 24 crypto firms, all compliant with anti-money laundering regulations and registered with the Financial Supervisory Commission, have united to form the Taiwan Virtual Asset Service Provider Association, as announced in a statement released by the group.
The association will be led by Titan Cheng, the founder and CEO of BitoPro, a prominent exchange in Taiwan, with Winston Hsiao, co-founder, and chief revenue officer of XREX, serving as vice-chair.
This establishment signifies Taiwan’s commitment to enhancing oversight over crypto trading platforms. The government has tasked the association with formulating self-regulatory guidelines, a crucial step towards maintaining industry standards.
Speaking at the launch meeting, Hsiho Huang, director of the securities firms division at the FSC, emphasized the importance of the virtual asset industry’s responsible development, stating :
We believe that the healthy development of this industry is closely related to the development of society and the economy.
The association’s immediate priority is to draft self-regulatory guidelines, focusing on the proper implementation of classification and grading management of Virtual Asset Service Providers (VASPs). This initiative aims to balance industry growth, government expectations, and consumer protection.
Currently, Taiwan mandates compliance with anti-money laundering laws for cryptocurrency service providers since the introduction of regulations in July 2021. However, the broader crypto industry in Taiwan remains largely unregulated.
Last month, the Ministry of Justice proposed amendments to existing AML laws, stipulating that both domestic and overseas crypto firms operating in Taiwan must register for AML compliance. Non-compliance could lead to imprisonment for up to two years, underscoring Taiwan’s commitment to fostering a compliant and regulated crypto landscape.
