Taiwan is collecting advice from other nations when it comes to regulating crypto-related businesses and companies in the republic. Earlier today, a local news platform published a report announcing a public hearing to be hosted by the Financial Supervisory Commission to establish “Guiding Principles for the Management of Virtual Asset Platforms and Trading Businesses (VASP).”
The guidance is set to focus on ten key principles including strengthening the management of virtual asset issuance, developing a review mechanism for the listing and delisting of virtual assets, and distinguishing platform assets and customer assets. Furthermore, improving transaction transparency, contract formulation, advertising solicitation, and complaint handling is also a task on the list.
Moreover, the guidance aims to establish an operation system, information security, internal control, and organizational review mechanism and emphasize that illegal solicitation of business using foreign currency merchants is not allowed.
Separation of customer assets and platform assets, evaluation of discontinued commodities, and enhancement of investor protection are some aspects that the Financial Supervisory Commission chairman, Huang Tianmu already planned to execute when the Commission was appointed the responsible body for overseeing virtual assets by the Executive Yuan of Taiwan. Simultaneously, in March, the Financial Regulatory Commission disclosed plans to develop guiding principles for VASP and encourage VASP-related associations to practice self-regulatory standards and collaborate with the nation’s ministries in the future.
Despite China banning crypto and crypto-related activities in 2021, Taiwan has been undertaking measures to redefine the digital asset industry in the state. According to reports, the government-licensed wireless service provider Taiwan Mobile Co. is allegedly in talks with local crypto platforms to potentially invest in one of these ventures, building the groundwork for a future partnership. XREX Inc., a financial institution based in Taipei that utilizes blockchain technology is one of the potential strategic collaborations.