FSC sets industry standards for VASPs in Taiwan to regulate the crypto market.
Foreign VASPs must obtain permits to operate in Taiwan.
New regulations are being introduced by Taiwan’s Financial Supervisory Commission (FSC) to further safeguard crypto investors. The Commission has released industry standards for virtual asset service providers (VASP) operating in Taiwan on September 26. These recommendations outline the FSC’s essential principles for regulating the crypto market in Taiwan.
Separating exchange treasury assets from client assets and examining processes for listing and delisting virtual assets are two examples of industry-wide regulations that the authority stated in the recommendations. Foreign VASPs were also told by the FSC that they couldn’t provide their services in Taiwan unless they first obtained the appropriate permits from the authorities.
The FSC stated:
“Overseas virtual asset platform operators are not allowed to provide business within the territory of the country […] unless they have been registered in accordance with the law.”
The regulator said that VASPs are encouraged to foster self-regulation within the cryptocurrency sector, with the expectation that relevant VASP organizations would develop self-regulatory rules in light of the principles laid forth.
The rules came shortly after significant cryptocurrency exchanges in Taiwan announced plans to form a self-regulatory body. Taiwan Virtual Asset Platform and Transaction Business Association was formally established on September 26 by local exchanges to promote the sector and assist regulators. Customers in Taiwan may trade cryptocurrencies on a number of different exchanges, both domestic and international giants.