The regulatory authority overseeing virtual currencies in Taiwan has been confirmed! Financial Supervisory Commission (FSC) Chairman Huang Tianmu previously hinted at the commission's significant supervisory role. Today (March 30), the FSC announced three major approaches to gradually strengthen oversight of domestic virtual asset (currency) exchanges.
The collapse of the FTX exchange accelerated global regulatory efforts. Chairman Huang recently confirmed during a legislative session that the FSC would become the primary regulator for virtual currency operators and announced forthcoming supervisory guidelines.
FSC's Three-Pronged Regulatory Strategy
1. Establishment of Guiding Principles
The FSC will soon release "Guiding Principles for Managing Virtual Asset Service Providers (VASPs)" under the Money Laundering Control Act. These principles will cover:
- Transparent information disclosure
- Asset segregation between clients and platforms
- Fair and transparent trading practices
- Anti-money laundering (AML) compliance
- Consumer protection mechanisms
👉 How Taiwan's new regulations compare to global standards
2. Promotion of Industry Self-Regulation
After implementing the guiding principles, the FSC will:
- Encourage VASP associations to develop self-regulatory codes
- Leverage major platforms to influence smaller operators
- Enhance internal controls across the industry
3. Cross-Ministry Collaboration
Given virtual assets' cross-sector nature, the FSC will:
- Coordinate with other government agencies
- Monitor international regulatory trends
- Accumulate management experience before formal legislation
Singapore's Model: Balancing Innovation and Risk Control
As Taiwan looks to international precedents, Singapore's approach offers valuable insights:
- Risk disclosures mandated for consumers
- Prohibition of credit/leverage usage
- Segregation of exchange user assets
- Conflict-of-interest reduction measures
DBS Bank CEO Piyush Gupta noted during a February visit to Taiwan that digital currency legalization is inevitable long-term, despite current market skepticism.
FAQs: Taiwan's Virtual Currency Regulation
Q: Are virtual currencies legal tender in Taiwan?
A: No. The FSC emphasizes they're highly speculative assets, not payment instruments.
Q: What protections exist for investors?
A: New guidelines will enforce asset segregation and transparency requirements, but risks remain high.
Q: How does Taiwan's approach differ from Singapore's?
A: Taiwan is adopting gradual regulation, while Singapore employs a single-license framework with stricter risk controls.
👉 Key differences between Asian crypto regulations
The FSC strongly cautions that virtual assets' extreme volatility demands careful risk assessment. While regulatory frameworks evolve, investor education remains critical.
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