Taiwan Introduces Crypto Bill to Parliament
On October 25, Taiwanese lawmakers introduced the Virtual Asset Management Bill to the unicameral parliament, Legislative Yuan. The bill aims to provide “better protection” to consumers and “appropriately regulate” the industry.
The 30-page bill appears modest in its demand for the industry. It suggests some common-sense obligations for virtual asset service providers (VASPs), such as separating customer funds from the company's reserve fund, establishing an internal control and audit system, and joining a local trade association.
However, this time, the 1:1 ratio does not require stablecoin issuers to hold reserve funds and the algorithm does not reference stablecoins. As far as marketing activities are concerned, advertising rules are determined by the “competent authority”.
The bill suggests fines for VASPs operating without a license – no less than 2 million Taiwan dollars (about $60,000) and no more than 20 million TWD (about $600,000). Companies already operating in the Taiwan market will have six months to obtain a license after the bill goes into effect.
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In September 2023, Taiwan's Financial Supervisory Commission (FSC) also issued industry guidelines for VASPs. The FSC prohibits foreign VASPs from providing their services in Taiwan without obtaining approval from the regulator.
The rules were created because major cryptocurrency exchanges in Taiwan formed a self-regulatory association. On September 26, local exchanges such as MaiCoin, BitstreetX, Hoya Bit, Bitgin, Rybit, Xrex and Shangbito joined forces to form the Taiwan Virtual Asset Platform and Exchange Trade Association. They aim to support the crypto industry and work with regulators.
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