Taiwan’s cryptocurrency industry is taking steps towards
establishing an industry association in collaboration with its financial
regulator. This move comes ahead of the expected release of official guidelines
later this week.

Cryptocurrency Sector in Taiwan
Prepares for Regulatory Framework

In
a collective statement, nine cryptocurrency firms have announced their intent
to apply for the formation of an industry association by mid-October. To
expedite the process, they have formed a dedicated working group.

Since
July 2021, Taiwan has mandated virtual asset services providers (VASPs) to
adhere to anti-money laundering (AML) laws, as introduced by the Financial
Supervisory Commission (FSC). However,
beyond these AML regulations, the broader cryptocurrency industry in Taiwan has
largely operated without formal oversight. The
FSC is on the verge of unveiling comprehensive guidelines pertaining to
cryptocurrency trading and payments for VASPs by the end of this
month.

Taiwan’s
Commitment to Enhancing Regulatory Compliance

In
anticipation of these guidelines, cryptocurrency companies are keen to
establish an industry association that can develop self-regulatory rules
aligned with the forthcoming regulatory framework.

Wayne
Huang, the Co-Founder and Group CEO of the Taipei-based crypto exchange XREX, expressed
optimism about the FSC’s impending guidelines. He believes that these
guidelines could develop a new industry, providing legitimacy, oversight,
a clear path for growth, and a means to gain public trust.

The
working group comprises nine firms, including prominent exchanges, such as
MaiCoin, BitoGroup, and ACE. Winston Hsiao, the Co-Founder and Group CRO of XREX,
has taken on the role of working group convener.

A
draft plan outlined by the working group indicates that once the industry
association is established, it aims to encompass various types of crypto firms.
This includes over-the-counter trading platforms, wealth investment platforms,
custody services providers, and quantitative trading companies.

As
part of the forthcoming guidelines, the FSC intends to impose restrictions on
offshore crypto exchanges operating in Taiwan without proper compliance
registration. This move aligns with the government’s commitment to ensuring
regulatory compliance within the cryptocurrency
sector.

Binance is looking to get AML compliant in Taiwan.Only this week, they became the first fully licensed exchange in El Salvador.Since crypto is considered a commodity in Taiwan, regulations are relatively lenient.The odds are in Binance’s favor.After all the legal battles,… pic.twitter.com/WUEpUZqDeS

— Dyor Exchange (@dyorexchange) August 11, 2023

It
was reported last month that Binance is in the
process of seeking registration in Taiwan to meet anti-money laundering (AML)
compliance requirements as well.

This article was written by Tareq Sikder at www.financemagnates.com.