- Digital assets, including crypto, have been legal in Taiwan since July 2021
- Crypto exchanges will have to apply for a license to perform transactions
On October 27, Taiwan’s legislative body officially proposed a draft crypto act for discussion. If passed, the law can take effect as soon as next year.
Digital assets, including crypto, have been legal in Taiwan since July 2021. At the time, Bankless Times reported there were Members of Parliament who wanted to ban crypto. They were calling for tighter crypto regulations, but there was no official body in the country that had policing power over the sale and purchase of these assets.
The country’s government mandates Anti Money Laundering (AML) regulations for cryptocurrency. The new bill aims to regulate crypto assets and operations more effectively.
Bill approved at first reading
The bill was approved at first reading in the Yuan, Taiwan’s Parliament. Member of Parliament Yung-Chang Chiang confirmed this in an interview with crypto news source The Block.
There is now an official body with policing power in the country – the Financial Supervisory Committee (FSC). Yung-Chang Chiang expects it to submit its version of the bill soon.
Crypto exchanges will have to apply for licenses
If the bill passes into law, all crypto exchanges operating in the country will have to apply for a license to transact in digital assets. If they don’t comply, government authorities may order them to stop operating.
Concerns that crypto raises
Crypto has pluses and minuses. The latter include issues related to money laundering and consumer protection. Customers who hold digital funds offshore don’t have protection because offshore exchanges are not required to comply with the same regulations as domestic ones.
The second reading of the bill is expected to take place around the end of January 2024.
Making digital asset use safer
It’s currently legal to invest in cryptocurrency in Taiwan. The bill aims to render digital asset use more secure, safer, and more transparent. Taiwan is prepared to welcome the new crypto regulations, as local media report overwhelming public support for them. The FSC will regulate the use of crypto.
