After becoming a primary Taiwanese crypto regulator, FSC prepared a set of rules for virtual asset service providers (VASPs).
Taiwan is gearing up to impose new regulations that will restrict unregistered foreign cryptocurrency exchanges from conducting operations within the country.
The Financial Supervisory Commission (FSC) of Taiwan has formulated a preliminary set of ten rules that will guide the operation of virtual currencies within its jurisdiction.
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The local news agency, the Central News Agency, recently reported this development, emphasizing the government's efforts to bolster transparency and security in the crypto sector.
One of the elements among the ten guidelines is the rule that aims to stop foreign VASPs from unlawfully engaging in business activities in Taiwan. Specifically, the FSC is suggesting that any overseas crypto platform lacking a corporate registration in Taiwan or failing to adhere to the country's Anti-Money Laundering (AML) laws should be barred from soliciting business from Taiwanese citizens.
The draft further outlines requirements for VASPs, such as maintaining separate accounts for customer and platform assets. In addition, VASPs must put into practice effective methods to counter money laundering activities.
Earlier this year, in March, FSC Chairperson Huang Tien-mu revealed that FSC will be the primary regulatory authority for the Taiwanese crypto ecosystem.
According to the Central News Agency report, the FSC is prepared to make revisions to its guidelines as and when required, taking into consideration international best practices. An official announcement regarding these draft regulations is expected to be made by the end of this month.
Taiwan is taking substantive steps to regulate the burgeoning cryptocurrency market, with particular attention to restricting noncompliant foreign exchanges. This move reflects a growing global trend as countries seek to bring order and security to the fast-evolving virtual asset ecosystem.
