Taiwan's Financial Supervisory Commission (FSC) is considering creating a dedicated legal framework to regulate the burgeoning cryptocurrency industry and plans to announce its findings by September this year. This announcement was made by FSC President Tien-mu Huang during the parliamentary session.
Taiwan's Financial Regulator Investigates Special Law to Regulate Cryptocurrency Industry
Huang emphasized the need for caution in managing the interface between traditional financial systems and cryptocurrencies, pointing out the possibility of supervising the crypto sector through a special legal framework.
According to Huang, the FSC has initiated research into the feasibility of enacting a dedicated crypto-asset law, with preliminary reports expected to be made public in September.
The regulator underlined its commitment to investor protection as it announced that it is preparing to establish a self-regulatory organization aimed at promoting dialogue between local crypto businesses and addressing relevant industry issues.
Taiwan is requiring cryptocurrency service providers to comply with anti-money laundering regulations following crackdowns by the FSC in July 2021.
However, beyond these measures, the crypto industry in the country largely operates without any particular regulatory oversight.
To promote self-regulation in the crypto sector, the FSC published guidance in September 2023, calling on industry participants to create their own supervisory mechanisms, potentially by establishing an industry association.
In a parallel development, some MPs submitted a proposal for a special draft crypto law in October 2023, anticipating the FSC's upcoming discussions on the issue.
*This is not investment advice.