24 Crypto Firms Collaborate to Establish Self-Regulatory Standards in Taiwan

CryptoNews.com

2024-06-13 23:08:02

Ruholamin Haqshanas

Last updated:

June 14, 2024 03:08 EDT | 2 min read

A consortium of 24 cryptocurrency companies has come together to form the Taiwan Virtual Asset Service Provider (VASP) Association, aimed at developing self-regulatory standards for the digital asset industry in Taiwan.

According to an official announcement on June 13, BitoPro founder and CEO Titan Cheng has assumed the role of chair and Winston Hsiao, chief revenue officer of XREX, will be serving as vice chair.

The group expressed its commitment to promoting robust and equitable regulations that foster the global growth of blockchain finance.

Taiwan’s VASP Association to Combat Fraud

The association, in collaboration with the government, the Ministry of Justice, and law enforcement agencies, aims to combat fraud and other criminal activities within the industry.

As a member of the association, XREX stated its intention to contribute technology, industry knowledge, and infrastructure to establish a joint defense platform and design international transfer rules that align with Taiwan’s requirements.

This includes developing currency flow scanning and tracking technology that is consistent with Taiwan’s patterns of money laundering and fraud.

The formation of the VASP association follows a proposal by officials from Taiwan’s Justice Ministry to amend the Anti-Money Laundering (AML) regulations for virtual asset service providers.

The proposed amendments could result in noncompliant entities facing up to two years in prison or fines of up to $1.5 million.

Additionally, Taiwan’s Financial Supervisory Commission (FSC) has announced plans to introduce new digital asset regulations in September.

“The establishment of the association will bring more cooperation and consensus to the industry, promote compliance, standardization and healthy development of the industry, ensure the safety, transparency and stability of the industry, and enhance the protection of consumer rights,” Hsiho Huang, a director from the FSC, said.

Taiwan to Push for Crypto Regulations

Taiwan is set to impose restrictions on offshore cryptocurrency exchanges operating within its jurisdiction unless they gain the required registration.

In September last year, the country’s Financial Supervisory Commission (FSC) drafted ten guiding principles for VASPs to establish self-regulatory rules.

The guiding principles, expected to be officially released by the end of this month, will focus on various aspects.

More specifically, the guidelines are expected to strengthen information disclosure, establish review standards for virtual asset listing and delisting, and ensure the separation and custody of companies’ and customers’ assets.

The FSC plans to strictly prohibit illegal business solicitation by foreign crypto firms.

It will mandate foreign VASPs to register in accordance with company law and declare their compliance with anti-money laundering regulations to the FSC.

Failure to do so will result in these firms being barred from soliciting business within Taiwan or from domestic residents.

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