Taiwan Accelerates Efforts on Offshore Exchange Legislation

The government of Taiwan is taking significant steps towards the introduction of the country’s first cryptocurrency regulation. According to a report by The Block, lawmakers plan to present the draft legislation to the parliament by the end of November 2023.

Yung-Chang Chiang, a representative from Taiwan’s Legislative Yuan, stated in an interview that he aims to make the initial draft available for parliamentary review by the end of November or even earlier. Chiang emphasized that such legislation is «essential» for regulating companies involved in cryptocurrencies, as these assets differ significantly from traditional financial products.

This move comes in response to growing concerns among Taiwanese legislators regarding cryptocurrency activity in offshore markets. They seek to establish a regulatory framework capable of effectively addressing these concerns. Chiang highlighted that cryptocurrencies require unique regulation due to their distinctive nature.

Meanwhile, major cryptocurrency exchanges operating in Taiwan have formed an association to protect the industry’s interests.

What to Expect in the Future?

Experts believe that the enactment of a dedicated cryptocurrency law could position Taiwan as a regional hub for the blockchain industry. However, restrictions on the operation of unregulated foreign companies may impact competition negatively. Additionally, the rules specify that foreign providers of virtual asset services cannot operate in Taiwan without the necessary approvals from local regulatory authorities.

The move by Taiwanese lawmakers to introduce cryptocurrency regulation reflects a growing global trend towards recognizing the need for comprehensive regulatory frameworks tailored to the cryptocurrency industry. It also underscores efforts to enhance investor protection and mitigate risks associated with cryptocurrencies. As these initiatives develop, the cryptocurrency landscape in Taiwan is likely to undergo significant changes in the coming months, influencing how businesses and individuals interact with digital assets in the region.

Furthermore, it is reported that in the fall, Taiwan’s Financial Supervisory Commission (FSC) will begin issuing licenses to firms prepared to operate in the country. To stay informed about the latest developments, it is advisable to consult qualified experts in crypto legal services.