FSC Plans New Digital Asset Regulations Draft for Taiwan in September 2024

cryptonews.com:

The Financial Supervisory Commission (FSC) of Taiwan has announced its intention to propose a new draft of digital asset regulations for the country in September 2024.

The upcoming draft bill will aim to create more effective regulations for digital asset markets and to assure the safety of investors, said Huang Tien-mu, chairman of the FSC, according to a March 4 news report by UDN.

In October, Taiwanese legislators introduced the Virtual Asset Management Bill to the unicameral parliament. This bill aims to provide better protection for customers and to properly supervise the industry. It includes provisions for fines ranging from two million Taiwanese dollars to 20 million Taiwanese dollars for unlicensed virtual asset service providers (VASPs).

The FSC has prohibited foreign VASPs from providing services in Taiwan without obtaining the necessary approvals from the regulator. These regulations were established after major cryptocurrency exchanges in the country formed a self-regulatory association to collaborate with regulators.

According to the recent report, Chairman Huang Tianmu stated that in September of this year, the FSC intends to propose a draft bill targeting virtual currencies. This measure aims to enhance investor protection and more effectively regulate the virtual currency business.

Huang highlighted the need for stricter regulations to address potential fraud risks associated with digital currencies. He warned that merchants attempting to defraud investors would face strict administrative penalties.

He also highlighted the increasing interconnection between digital assets and the traditional financial system, expressing concerns that digital assets pose risks to the stability of the legacy financial system.