Cryptocurrency News

Taiwan to restrict unregistered, noncompliant foreign crypto exchanges

9ed0759d cefe 45f0 a0a9 e9188579e348

East Asian country Taiwan is reportedly planning to put restrictions on unregistered overseas crypto exchanges operating within its jurisdiction as a part of its incoming guidance for virtual asset service providers (VASPs). 

On Sept. 7, local media outlet Central News Agency reported that the Financial Supervisory Commission (FSC) of Taiwan has created a draft of ten guiding principles for the management of virtual currencies in the country.

The draft guidelines include the enhancement of information disclosure and require operators to set standards for reviewing listing and delisting. In addition, it also requires separate custody of customer and platform assets and specifies that VASPs should implement ways to prevent money laundering.

Among the ten principles set by the FSC, the tenth rule prohibits foreign VASPs from illegally soliciting business within Taiwan. The FSC proposed that overseas crypto platforms that did not have a company registration in Taiwan and did not comply with its anti-money laundering laws should not solicit business in Taiwan or its citizens.

The report stressed that the FSC will refer to international practices and will consider amendments within its regulations when they are needed in the future. According to the report, the official announcement is expected to come out by the end of September.

Related: IMF, FSB release joint policy recommendations for crypto assets at request of G20

Earlier this year, FSC chairman Huang Tien-mu announced that the FSC would assume the responsibility of being the primary crypto regulator in Taiwan. On March 20, the official highlighted that the FSC’s upcoming regulatory framework for crypto will have major policies and rules including the separation of company assets and customer funds.

Magazine: NFT collapse and monster egos feature in new Murakami exhibition