A crypto trader on Taiwan’s MaiCoin Max exchange made it rich without ever placing a single trade, amassing an astounding 10 million NTD (about $310,000). What’s the secret behind this unexpected gain? of all things, tax compliance.

Who says retail users can't profit from trading cryptos? Taiwan's largest crypto exchange @MAX_exch announced some user made a tiny trade that paid $2 NTD ($0.06 USD) in fee on platform, the tax receipt ended up winning 10mil ($310k USD) in Taiwan govt's invoice lottery! pic.twitter.com/FSGXdKVW5J

— Paul Huang (@PaulHuangReport) October 5, 2023

Taiwan has a tax system called “Uniform Invoice Lottery” which ensures retailers pay their share of taxes and comply with tax regulations. Once a threshold is reached, the retailer is required to pay a receipt to the customer, which also serves as a lottery ticket. The price of this lottery can be as high as 10 million NTD.

Now lets explore how cryptocurrency traders earn money.

Every trade done by a trader on MaiCoin is considered as an even when they generate profits from spreads and service fees. Which is why they accumulate virtual lottery tickets.

This unique tax system is in place since 1950s and its main objective is to create incentives for people to pay their fair share of taxes. In Taiwan, it is not uncommon for a person to buy snacks and newspaper while heading back home and strike a lottery.

MaiCoin’s industry association

There are other developments taking pace in Taiwan’s crypto scene. MaiCoin and other nine prominent exchanges recently announced plans to form an industry association by mid October.

Winston Hsiao, the chief risk officer at XREX leads a team which runs this initiative and works towards the transformation of the Taiwanese crypto industry

This association will consist of cryptocurrency companies, including those involved in, over the counter trading wealth management, custody services and quantitative trading.

All crypto companies including over the counter trading wealth management, custody services and quantitative trading will be a part of this association. On the other hand, Taiwan’s Financial Supervisory Commission is readying itself to release ten guidelines for crypto companies which could or could not impact this association.

Strong review procedures, maintaining client payments apart from corporate assets, and adhering to anti-money laundering regulations will be the primary objectives of these guidelines. The cryptocurrency market in Taiwan is through some fascinating changes, and it appears that in the near future, it will grow and remain stable.

The guidelines will primarily cover compliance to anti-money laundering regulations and maintaining client payments apart from corporate assets. The Taiwanese crypto sector is going through an amazing transformation which will ensure that the sector remains stable and keeps growing.

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