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Amidst the anticipation of regulatory frameworks for cryptocurrencies in Taiwan, nine crypto firms have unveiled plans to launch an industry association. This proactive move emerges as Taiwan’s Financial Supervisory Commission (FSC) prepares to disclose its much-anticipated guidelines on crypto trading and payments by month’s end.
Crypto Regulations In Taiwan
The forthcoming guidelines, inspired by Hong Kong’s VASP licensing framework, emphasize the paramount importance of consumer protection. Consequently, a proposal has been made to define specific hot and cold wallet ratios for deposits with crypto exchanges. This significant measure is aimed at fortifying the security of consumer assets. Additionally, mandatory insurance against potential user losses is on the horizon to further boost consumer confidence.
Besides these protective measures, the FSC guidelines intend to restrict offshore crypto exchanges. With proper compliance registration, these offshore entities will avoid operational constraints onshore. Hence, such a move is a significant stride towards ensuring that every player in Taiwan’s crypto arena adheres to unified standards.
Moreover, the new regulations propose a ban on stablecoins pegged to the Taiwanese dollar and impose restrictions on foreign exchange advertising within Taiwan. Both these measures are crafted to enhance the stability of Taiwan’s financial system and shield consumers from potentially deceptive advertising campaigns.
Promoting Industry Self-regulation
The FSC’s dedication to consumer protection and transparency aligns seamlessly with global trends. Significantly, there’s a push for fostering self-regulation within the industry. With this vision in mind, the Ministry of Economic Affairs has drafted an amendment to existing legislation. This amendment will introduce a tailored category for digital asset services.
Besides the overarching regulatory structure, the nine crypto firms spearheading the industry association have initiated a working group. This group, led by Winston Hsiao, co-founder of XREX, aspires to formulate self-regulatory rules anchored in the FSC’s guidelines. Wayne Huang, another co-founder of XREX, voiced his optimism, stating the new FSC guidelines would provide the budding industry with legitimacy, oversight, and a robust path for growth. Moreover, it would be a catalyst for earning public trust.
Establishing this industry association and the imminent rollout of the FSC’s guidelines marks a transformative phase for Taiwan’s crypto sector. Moreover, the future is well-charted, with clear directives and a collective vision guiding the way.
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