Taiwan’s financial regulator, the Financial Supervisory Commission (FSC), has recently released new guidelines for virtual asset service providers (VASPs) in an effort to improve the regulation of the crypto exchange space in the country. The FSC’s guidelines focus on various aspects of virtual asset services, including exchange registration, segregation of customer funds, and prohibition of certain products.
The FSC’s guidelines require crypto platforms to establish and disclose mechanisms for listing and delisting assets, as well as implement measures to ensure the security of customer funds and have a robust security management system in place. The guidelines also emphasize the importance of information disclosures, with specific requirements for internal audits and other procedures.
One significant aspect of the guidelines is that any offshore crypto exchange seeking to offer products and services to Taiwanese customers must register with the FSC before doing so. This measure is aimed at ensuring that overseas exchanges operating in Taiwan are compliant with local laws and regulations, particularly those related to money laundering prevention.
The FSC also states that VASPs will be allowed to form or join self-regulatory standards organizations. The goal of these organizations is to promote self-discipline within the industry and establish standards and norms that crypto platforms should adhere to in order to enhance customer protection.
These new guidelines indicate Taiwan’s commitment to strengthening its regulatory framework for the crypto industry. By implementing these measures, the FSC aims to create a more transparent and secure environment for virtual asset services providers, which will ultimately benefit both consumers and the overall growth of the industry.
It is important to note that the guidelines were announced without mentioning the original author of the article.