Taiwan to restrict unregistered, noncompliant foreign crypto exchanges

Taiwan to restrict unregistered, noncompliant foreign crypto exchanges

East Asian country Taiwan is reportedly planning to put restrictions on unregistered overseas crypto exchanges operating within its jurisdiction as a part of its incoming guidance for virtual asset service providers (VASPs). 

On Sept. 7, a local media outlet, the Central News Agency, reported that the Financial Supervisory Commission (FSC) of Taiwan had created a draft of 10 guiding principles for the management of virtual currencies in the country.

The draft guidelines include enhancing information disclosure and require operators to set standards for reviewing listing and delisting. In addition, they also require separate custody of customer and platform assets and specify that VASPs should implement ways to prevent money laundering.

Among the 10 principles set by the FSC is a rule prohibiting foreign VASPs from illegally soliciting business within Taiwan. The FSC proposed that overseas crypto platforms that do not have a company registration in Taiwan and do not comply with its Anti-Money Laundering laws should not solicit business in Taiwan or from its citizens.

The report stressed that the FSC will refer to international practices and will consider amendments within its regulations when they are needed in the future. According to the report, an official announcement is expected by the end of September.

Related: IMF, FSB release joint policy recommendations for crypto assets at request of G20

In March, FSC Chairperson Huang Tien-mu announced the FSC would assume the responsibility of Taiwan’s primary crypto regulator. On March 20, the official highlighted that the FSC’s upcoming regulatory framework for crypto will have major policies and rules, including separating company assets and customer funds.

Magazine: NFT collapse and monster egos feature in new Murakami exhibition