Taiwan to Roll Out Stricter Crypto Rules in January 2025 to Boost Industry Oversight | Coinspeaker
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Taiwan to Roll Out Stricter Crypto Rules in January 2025 to Boost Industry Oversight

Taiwan is not alone in the efforts it is taking towards crypto regulation. There is a global trend of countries paying more attention to their crypto industry.

Mayowa Adebajo By Mayowa Adebajo Julia Sakovich Edited by Julia Sakovich Updated 3 mins read
Taiwan to Roll Out Stricter Crypto Rules in January 2025 to Boost Industry Oversight
Photo: Unsplash

Key Notes

  • New crypto regulations in Taiwan to focus on transparency, security, and fair trading.
  • Special law proposal for crypto assets to be submitted by mid-2025.

Taiwan’s Financial Supervisory Commission (FSC) is set to introduce new rules to crypto exchanges within its jurisdiction. Per the report, Hsi-Ho Huang, director of the securities firms division at the FSC, shared that the new rules will take effect in January 2025.

These rules will see the commission pay closer attention to crypto listings on exchanges, helping the FSC to tighten its control and oversight duties over the same exchanges.

With the upcoming “registration regulation”, Taiwan will set specific criteria for listing and record-keeping on crypto platforms. Huang shared the FSC’s updated compliance requirements during the FinTechOn conference in Taipei. According to the official, the new rules will apply to all “virtual asset service providers” (VASPs) operating in Taiwan. This means that once the rule comes into effect by January, VASPs will need to register for compliance.

It might be worth noting that the new rule is simply an upgrade to its recent AML rule, which the FSC implemented last month.

The regulator has also warned about the implications of non-compliance. Should platforms fail to adhere to the new registration regulation, such platforms and their executives may face severe penalties, including possible imprisonment for up to two years.

Key Area of Focus for Taiwan’s New Crypto Rule

With its new regulation, the FSC might be seeking to address several areas that are important to Taiwan’s growth. These areas include the custody of fiat currencies, information security, handling customer complaints, record-keeping, and clear disclosure of information to the public.

In view of the above, the new compliance rules will focus on transparency, consumer protection, and overall, endure fair trading across all crypto exchanges.

To achieve its aim, one major aspect that the new regulation will take extremely seriously is that it will require crypto platforms to follow well laid out procedures for listing and delisting digital assets.

Additionally, these platforms must implement systems to detect any suspicious activity. This is in cases such as abnormal price changes or trading volume. This is to prevent any forms of market manipulation.

For better security, the FSC will also require crypto custodians to separate client assets from the platform’s operational funds. These assets must either be held in trust or separated to protect clients’ investments. Furthermore, custodians must arrange for an independent Certified Public Accountant (CPA) to review and report on client assets annually.

Special Law Proposal in the Works

Meanwhile, the compliance registration rules are not the only thing that the FSC has up its sleeves. The regulator is also reportedly working on a separate law specifically designed to regulate crypto assets. As the FSC Chair, Jin-Lung Peng says, the commission has made notable progress on this legislation. The plan, however, is to present the proposal to the Executive Yuan, Taiwan’s top administrative body, by June 2025.

For what it’s worth, Taiwan is not alone in the efforts it is taking toward crypto regulation. There is a global trend of countries paying more attention to their crypto industry. More so, considering how the industry is very prone to risks and manipulation.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

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Mayowa Adebajo

Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this. He's a reader, a researcher, an astute speaker, and also a budding entrepreneur. Away from crypto however, Mayowa's fancied distractions include soccer or discussing world politics.

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