Taiwan Sets up Self-regulating Crypto Body

Taiwan is looking to regulate crypto activities in the country by setting up a new body for self-regulating cryptocurrencies.

Taiwan is taking no chances with its crypto sector and, as a result, has taken a significant stride toward self-regulation. This is the result of the country’s official establishment of an industry association today, which is part of its dedication to creating a robust framework to regulate the rapidly evolving digital asset sector.

Cryptocurrency firms in Taiwan collaborate to establish regulations

According to the announcement made on Thursday, the Taiwan Virtual Asset Service Provider Association (TVASP) is a significant milestone in Taiwan’s approach to crypto regulation. The association, established by 24 crypto firms that have already been registered with the Financial Supervisory Commission (FSC) for anti-money laundering (AML) compliance, is designed to influence the industry’s future through self-governance.

The TVASP Association is spearheaded by Titan Cheng, CEO of the major Taiwanese exchange BitoPro, and Winston Hsiao, co-founder and chief revenue officer of XREX, who is dedicated to creating plain and concise industry guidelines.

Taiwan’s FSC has repeatedly asserted that it will persist in supporting responsible growth within the crypto sector. “We acknowledge the critical role that a robust virtual asset industry plays in the economy and society,” stated Hsiho Huang, the division director of the FSC’s securities firm.

Consequently, the TVASP Association’s establishment is already consistent with this vision.

As previously mentioned, the association’s primary objective is to establish self-regulatory guidelines, particularly on the classification and grading of VASPs (Virtual Asset Service Providers). This is due to the system’s objective of maintaining an equilibrium between consumer protection, government supervision, and industry expansion.

Expanding upon Current Anti-Money Laundering

Taiwan has already made decent strides in the regulation of cryptocurrency. Crypto service providers have been required to comply with AML regulations by the FSC since July 2021. The Ministry of Justice also proposed amendments to the current AML laws in the past month. The purpose of these amendments was to mandate that domestic and foreign crypto firms register for AML before conducting business in Taiwan. The proposal suggests that any organization that is found to be lacking in compliance may be subject to imprisonment penalties of up to two years.

Crypto firms are assuming responsibility for establishing a responsible and well-regulated crypto ecosystem by establishing the TVASP Association. This is accomplished by collaborating with the government to guarantee a secure and prosperous digital asset environment.