Taiwan Proposes Special Law to Regulate Digital Assets
Taiwan is taking steps to establish a regulatory framework for digital assets by proposing a special law that would require all cryptocurrency platforms in the country to apply for a license. The draft of the Crypto Act had its first reading at Taiwan’s parliament, the Legislative Yuan, on October 27, according to an official announcement.
Taiwan’s Financial Supervisory Commission Urged to Submit Crypto Bill
A member of the parliament and a contributor to the proposed Special Act, Yung-Change Chiang, called on Taiwan’s Financial Supervisory Commission (FSC) to submit their version of a draft crypto bill to the legislature. Chiang believes that this submission will help various sectors unite and have a cohesive understanding during the legislative process. The FSC had previously released guidelines for self-supervision of the crypto industry in September, which aimed to protect consumers from losses and establish standards for asset listing and delisting on trading platforms.
Chiang, however, criticized the FSC’s plans to enforce the guidelines through a potential industry association, stating that such measures are legally unenforceable. He emphasized the need for a special law that grants regulatory authorities the power to impose penalties on operators who violate self-regulation rules.
Special Crypto Law Mandates Operational Permits for Digital Assets Platforms
The proposed special crypto law is a combined effort by Chiang and 16 other lawmakers. If passed, it will require all digital assets platforms in Taiwan to apply for operational permits. Failure to comply may result in penalties, including a cease and desist order from regulators.
While a specific timeline for the bill’s second reading has not been set by the parliament, there is speculation that it may occur before the end of January 2024, as the tenure for the current Taiwanese lawmakers ends at that time.
In addition to the proposed special crypto law, Taiwan has already implemented anti-money laundering regulations for virtual assets services providers. These regulations were introduced by the FSC on June 30, 2021, to combat money laundering and terrorism financing.
Source: Official Announcement
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