Taiwan, officially the Republic of China, on Monday announced its top financial regulator as the main body to oversee the crypto industry in the country amid the greater demand to regulate crypto.
Huang Tien-mu, the Chairman of the Financial Supervisory Commission, said the financial regulator will oversee the crypto payments and transactions initially. The confirmation of the official announcement on naming the financial regulator as the crypto regulatory body could come as early as March end.
Taiwan’s cabinet and the Financial Supervisory Commission (FSC) are in discussion with other government departments to work on efficient regulation of crypto, reported Reuters on March 20. Also, the FSC will work with industry representatives on “self-regulation measures.”
However, NFTs or “non-fungible tokens” will not come under its crypto regulatory oversight. As per local media, NFTs are still emerging as an asset class and would be regulated later if required.
Crypto Industry Calls For Crypto-Friendly Regulations in Taiwan
While other countries in the region taking an active stance, Taiwan will be looking to increase oversight on the industry. Singapore proposed tighter rules on retail crypto trading, while Hong Kong aims for crypto-friendly rules to evolve into a crypto hub.
Crypto companies including exchanges are calling for crypto-friendly regulations in the country. Binance Holdings, Matrixport Technologies, and Woo Network LLC sent a joint paper on Saturday urging regulators for more friendly regulation that provides clarity for companies operating in Taiwan.
“From our observations, some markets that tried to regulate virtual assets under existing financial rules and categorizations experienced great difficulty as the rules lacked clarity and made it very confusing for business operators, authorities and customers.”
Crypto exchanges providing virtual asset trading services will be the first to be regulated under the FSC. The FSC’s Banking Bureau is working on regulatory changes and consulting with crypto exchange operators on crypto regulations.
Taiwan had earlier taken a strict approach toward crypto. Last year, the country banned credit card use for crypto purchases due to risks associated with virtual assets. Credit cards are also prohibited for stocks, futures, options, online gambling, and other transactions. The country witnessed increased crypto activity after China’s crypto crackdown in 2021.
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