Taiwan to Introduce New Digital Currency Laws in September: Report

The Financial Supervisory Commission (FSC) has announced that it will propose new draft regulations for Taiwan's digital assets in September 2024.

According to a March 4 UDN news report, the upcoming draft law aims to create more effective regulations for digital asset markets and ensure investor safety, said Huang Tien-mu, chairman of the FSC.

The speech warns investors of potential fraud risks associated with digital currencies and warns of strict administrative penalties against traders who attempt to defraud investors.

Huang's speech emphasized the growing nexus between digital assets and the traditional financial system, with the former threatening the latter. The committee will develop rules to protect the stability of the old financial system from the risks of digital assets.

Taiwanese lawmakers introduced the Virtual Asset Management Bill to the unicameral parliament on October 25. The bill aims to provide “better protection” for consumers and “appropriately regulate” the industry.

The bill also proposes fines of between two million Taiwan dollars (around $60,000) and 20 million TWD ($600,000) for unlicensed virtual asset service providers (VASPs).

Taiwan Chamber of Commerce to release Bitcoin ETF study

According to Gao Jingping, deputy director of the Securities Bureau, the Taiwan Chamber of Commerce will release a study on Bitcoin (BTC) exchange-traded funds (ETFs) in April.

Tien-mu also indicated that Taiwan is considering accepting Bitcoin ETFs under its regulatory policy, but warned market participants from investing in foreign crypto-based exchange-traded products.

Taiwan's FSC prohibits foreign VASPs from providing their services in Taiwan without obtaining the necessary approval from the regulator.

The rules were created by the country's major cryptocurrency exchanges in 2018. September 26, 2023, after the establishment of a self-regulatory association. Local exchanges including BitstreetX, Hoya Bit, Bitgin, Rybit, Xrex and Shangbito to support the crypto industry and cooperate with regulators.

The FSC issued the country's first security token license to Cathay Securities on November 9, 2023, allowing the firm to issue $930,000 worth of green bonds every six months.

Related: Taiwan evaluates global trends before deciding on a crypto ETF