The Virtual Asset Service Act draft has been submitted to Taiwan's Executive Yuan for review, signaling an impending surge in digital currency opportunities. Major conglomerates like Fubon Group and Far Eastern Group are strategically positioning themselves to capitalize on this emerging market.
Regulatory Milestone: Virtual Asset Service Act
According to Financial Supervisory Commission (FSC) officials, the Virtual Asset Service Act draft was submitted on June 27, marking a pivotal step toward government-regulated cryptocurrency frameworks. This legislation aims to:
- Enhance trust and transparency for crypto exchanges.
- Provide legal foundations for stablecoins and CBDCs (Central Bank Digital Currencies).
- Establish custodial safeguards against fraud and money laundering.
Key players like FarEasTone Telecom (Far Eastern Group) and Taiwan Mobile (Fubon Group) have already entered the arena, alongside Cathay Securities Investment Trust, which launched the 00909 Digital Payment ETF.
The Rise of Stablecoins and Blockchain Adoption
While AI dominated recent discourse, blockchain and stablecoins are now gaining traction. The Virtual Asset Service Act (VASP) will:
- Regulate crypto exchanges to ensure market integrity.
- Facilitate seamless cross-border payments via stablecoins (e.g., USDT, USDC).
- Bridge traditional finance and decentralized finance (DeFi).
Quote:
"VASP legitimizes stablecoins, creating a gateway for blockchain economies," said Wen Hong-Jun, Vice Chairman of the FinTech Association.
Industry Moves: Telecom Giants Dive In
Taiwan Mobile (Fubon Group)
- Launched TWEX, a user-friendly virtual asset exchange targeting non-crypto users.
- Focuses on low-risk entry points (e.g., micro-investments).
- Expanding services for SMEs and institutional investors.
FarEasTone (Far Eastern Group)
- Invested in MaiCoin, Taiwan’s largest crypto platform.
- Plans to integrate crypto payments with its FarEasTone Points ecosystem.
FAQs: Digital Currency in Taiwan
Q1: How does the VASP Act protect investors?
A1: It mandates KYC/AML compliance for exchanges, reducing fraud risks.
Q2: Which stablecoins are popular in Taiwan?
A2: USDT and USDC dominate, with potential for locally issued stablecoins.
Q3: Will telecoms replace traditional banks in crypto services?
A3: Not immediately—collaborations (e.g., Far Eastern Bank’s custody services) are more likely.
The Road Ahead
With Fubon, Far Eastern, and Cathay leading the charge, Taiwan’s digital currency market is poised for exponential growth.
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