Taiwan Regulators Unveil 'Guiding Principles' To Regulate Digital Assets, Crypto

In a bid to streamline the burgeoning digital currency landscape, Taiwan's Financial Supervisory Commission (FSC) has rolled out a comprehensive set of guidelines.

The rules are tailored for virtual asset platforms and transaction business enterprises, or VASPs.

The forthcoming Benzinga's Future of Digital Assets conference on Nov. 14 is set to further discuss these evolving dynamics of digital currencies, emphasizing the regulatory challenges and the importance of such guidelines in the global context.

Back in June 2019, the FSC had already taken steps to curb money laundering and combat terrorism financing by virtual currency platforms.

These new "Guiding Principles" draw inspiration from regulations in the European Union, Japan, and South Korea, and incorporate feedback from Chinese industry stakeholders, the FSC stated.

Central to these guidelines is the mandate for platforms to maintain a clear demarcation between client assets and their own.

This ensures that the legal currency or virtual assets received from clients remain distinct from the platform's assets.

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Furthermore, to bolster transaction fairness and transparency, platforms are now required to establish mechanisms that guarantee equitable market transactions.

Another pivotal aspect of the guidelines is the emphasis on information disclosure.

Platforms are now obligated to be transparent about virtual asset issuance, product listing and delisting, asset separation, and custody.

This move is designed to foster trust and ensure that customers are well-informed.

For individual currency dealers, the guidelines stipulate that natural persons engaged in the virtual asset business must report to the FSC, ensuring their operations are in compliance with money laundering prevention laws.

In a move to protect domestic interests, offshore virtual asset platform operators are now barred from soliciting business within Taiwan or from Chinese citizens, unless they meet specific registration criteria and declare adherence to money laundering prevention laws.

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