Taiwan Mobile receives VASP license, entering the crypto market

Taiwan Mobile, the country's second-largest telecommunications provider, has received a virtual asset service provider license from the country's Financial Supervisory Commission (FSCC), according to local reports. The license creates a way to open a cryptocurrency exchange.

Taiwan Mobile, known as Taiwan's Big Brother in Chinese, is the 26th company to receive a VASP license. Taiwan Mobile has been eyeing space in the crypto market for more than a year, according to Bloomberg, which speculates that it is looking to buy an existing exchange. It is licensed under Fusheng Digital, the owner of Taiwan Mobile. Both companies are led by Lin Zichen.

VASPs as a diversified and regulated domestic industry

To obtain the VASP license, Taiwan Mobile had to comply with several Anti-Money Laundering (AML) requirements. Once those hurdles are cleared, the company is eligible to become a member of the Taiwan Virtual Property Service Provider Association, which was established in June.

Most VASP association members are startups, so the entry of a large corporation would give the industry a boost, United Daily News said. The addition of companies from different sectors will allow the association to have new experience and resources, Chairman Zheng Guantai said.

Crypto regulation is getting tighter in Taiwan

FSC takes responsibility for crypto regulation in mid-2023. In September, it established administrative guidelines for crypto businesses and banned foreign operators. The following month, a bill was introduced in Taiwan's parliament to back the FSC's guidelines on penalties.

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The FSC announced in March that it would submit a bill to parliament to tighten regulation and increase consumer protection. In May, the Ministry of Justice proposed amendments to the AML laws, making those responsible for violations against VASPs liable for prison terms.

Binance also cooperated with the Department of Justice to settle a $6.2 million money laundering case in the same month. It led to the indictment of nine people on charges of money laundering, racketeering and organized crime.

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