Taiwan's FSC Set to Revamp Digital Asset Regulations; Cathay Securities Receives First STO License
Summary:
In September 2024, Taiwan's Financial Supervisory Commission (FSC) plans to propose revamped digital asset regulations to enhance market safety and investor protection. The Virtual Asset Management Bill was also introduced to the legislature, advocating stronger customer protection and industry supervision. Additionally, a study on Bitcoin ETFs will be released by Taiwan's Chamber of Commerce in April. The FSC prohibits foreign Virtual Asset Service Providers from operating in Taiwan without due authorization. Finally, Cathay Securities received the country's pioneering STO license from the FSC on November 9, 2023.
In September 2024, a renewed version of digital asset protocols is set to be proposed in Taiwan, according to the country's Financial Supervisory Commission (FSC). To provide safer digital asset markets and investor protection, the proposed bill tries to enforce efficient regulations, as per Huang Tianmu, FSC Chairman's statement on a UDN report dated March 4. Along with the caution about potential fraud in digital currency space, strict penalties for fraudulent merchants were also highlighted in the speech. The chairman emphasized the need to mitigate the impact of digital assets' growing integration with conventional finance.
On October 25, Taiwan's unibicameral legislature was presented the Virtual Asset Management Bill, aiming to offer superior customer protection and adequate industry supervision. The proposed regulations could penalize unlicensed Virtual Asset Service Providers (VASPs) with fines between 2 million TWD ($60,000 approximately) and 20 million TWD ($600,000 approximately).
On another note, Taiwan's Chamber of Commerce is set to unveil an analytical study on Bitcoin exchange-traded funds (ETFs) by April, as announced by Gao Jingping, Deputy Director of the Warranty Bureau. Huang Tianmu suggested Taiwan might incorporate spot Bitcoin (BTC) ETFs within its regulatory scope, along with advising carefulness in investing in foreign cryptocurrency-based exchange-traded products.
Foreign VASPs are barred from extending their services in Taiwan without acquiring necessary permissions from the FSC. Notably, these regulations were framed in response to Taiwan's leading cryptocurrency exchanges forming a self-regulatory organization on September 23, 2023. Local exchanges like BitstreetX, Hoya Bit, Bitgin, Rybit, Xrex, and Shangbito united to boost the crypto industry and partner with regulatory bodies.
The FSC's first security token offering (STO) license was awarded to Cathay Securities on November 9, 2023, thereby authorizing the company to release tokenized green bonds worth $930,000 semiannually.
Related: Taiwan's decision on crypto ETFs hinges upon the global trends review.
Published At
3/4/2024 4:51:42 PM
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