Taiwan to Draft Regulatory Law for Crypto by November 2023 Amid Investor Protection Efforts
Summary:
Taiwanese lawmakers led by Yung-Chang Chiang are expected to present the first draft of a unique law overseeing cryptocurrency businesses by November 2023, in response to rising offshore market concerns. The development follows September's guidelines from Taiwan's Financial Supervisory Commission, aimed at bolstering crypto investor protections, including segregating treasury assets in exchanges, scrutinizing digital asset listings, and restricting foreign virtual asset service providers without local approvals. In addition, prominent Taiwanese cryptocurrency exchanges have formed an association to foster industry interests.
Taiwanese legislators are reportedly planning to present the initial version of a unique law by the conclusion of November 2023, as per a report by The Block. Yung-Chang Chiang, a representative from Taiwan's Legislative Yuan, expressed his intentions in an interview, stating that he plans for the preliminary draft to be ready for parliamentary review by November end or earlier. He stressed the necessity of this law in overseeing cryptocurrency-related businesses. This action follows the escalating concerns among Taiwanese legislators regarding offshore market activities and their desire to circumvent "regulatory arbitrage". Chiang believes that cryptos are distinct from traditional financial instruments and should be managed under a specific law.
On October 6, Chiang conducted a public consultation in the Taiwan parliament, inviting digital asset service providers, scholars, and other industry professionals to discuss the proposed draft.
Related: Taiwan's Financial Supervisory Commission (FSC) targeting authority over cryptocurrency regulation
This discussion came after the FSC of Taiwan released guidelines on September 26, intending to enhance cryptocurrency investor safeguard measures. These measures feature industry-wide regulations, including segregating treasury assets in exchanges from customer assets, and implementing protocols to scrutinize the listing and unlisting of digital assets. The guidelines also explicitly mention that foreign virtual asset service providers must obtain the required approval from local regulatory authorities before offering services in Taiwan.
On the same day, prominent Taiwanese cryptocurrency exchanges formed an association with a goal to protect industry interests.
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Published At
10/6/2023 2:02:07 PM
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