Taiwan Follows Hong Kong With Plans To Regulate Crypto
20 März 2023 - 07:00PM
Taiwan has announced its plans to regulate its crypto industry
through the Financial Supervision and Administration Committee
(FSC) or the newly established Ministry of Digital Affairs (MODA).
Taiwan’s Crypto Legislation Taiwan plans to regulate
cryptocurrencies through special legislation, and its Financial
Supervisory Commission (FSC) will monitor the burgeoning industry.
Huang Tien-mu, the Chairman of the FSC, confirmed this during a
parliament hearing analyzing global banking stability.
Related Reading: Binance Teams Up With Hong Kong Police To Fight
Crypto Crime Participants in Taiwan’s crypto industry welcomed the
news. Wayne Huang, the co-founder and CEO of XREX, believes the
industry will grow under proper regulation. Finally!
Taiwanese regulators will fully regulate the crypto industry.
Excellent coverage by @CoinDesk @thesamreynolds
🙏🏽https://t.co/5PvgCCgQDS — Wayne Huang (@waynehuang) March 20,
2023 The new rules will require crypto trading platforms to be
licensed by the appropriate regulators. Meanwhile, consultations
have been launched to propose how best to regulate virtual asset
trading platforms. An initial framework for the law is expected by
June, with an initial draft for later this year. Taiwan’s central
bank and the FSC are two of the primary financial regulators in
Taiwan. The central bank sets the country’s monetary policy and
oversees foreign exchange regulations. On the other hand, the FSC
has a broad remit over everything from banking regulation,
securities, and Futures to anti-money laundering (AML). Some
lawmakers in Taiwan wanted the newly-established Ministry
of Digital Affairs (MODA) to be the chief crypto regulator since it
is a new digital asset technology. Yet, others said the MODA is
relatively new and inexperienced compared to the FSC.
Currently, the FSC has no interest in regulating non-fungible
tokens (NFTs) and local Taiwan media quoted Huang Tien-mu,
saying that since NFTs are still emerging as an asset class, it is
too early to regulate them. FTX Crash Shaping Taiwan’s Crypto
Landscape Despite China’s ban on crypto-related
activities, Hong Kong wants to become a crypto hub.
Taiwan, which has previously taken a hands-off approach to crypto
regulation, is following Hong Kong’s lead. The FTX crash of last
year could have made regulators speed up the creation of applicable
laws. Following the bankruptcy of the Sam Bankman-Fried-led
exchange, clients in Taiwan were some of the most impacted, with
a report estimating that they lost approximately $20
billion. The FTX collapse also saw crypto assets tank. Bitcoin
dropped below $20,000 in mid-November, registering new 2022 lows.
Crypto firms in Taiwan remain optimistic that the government will
learn from Hong Kong’s regulatory experience and take steps to
create a favorable regulatory environment to spur innovation in
crypto and blockchain. Despite Hong Kong’s crypto ambitions, the
city could still find competition with other hubs like Singapore
and Dubai. Related Reading: Binance USD Loses 43% Of Market
Cap Value Following Regulation Issues According to Yuya Hasegawa, a
market analyst from the Japanese crypto exchange
Bitbank, regulation is necessary for healthy growth.
Still, to compete with other crypto hubs, there must be an
appealing tax policy for crypto projects. Feature Image From Canva,
Chart From TradingView
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