Taiwan’s Thriving Crypto Industry Gears Up for Regulatory Revolution

• Taiwan’s cryptocurrency sector is on the verge of enhanced legitimacy and oversight with the formation of an industry association.
• Nine prominent cryptocurrency firms plan to apply for the establishment of the association in mid-October.
• A dedicated working group has been set up to expedite the association’s formation.

Taiwan’s cryptocurrency sector is poised to usher in a new era of legitimacy and oversight with the imminent formation of an industry association. The island nation’s financial regulator is set to release comprehensive guidelines later this week, marking a pivotal moment for the digital asset space in Taiwan.

In a joint statement, nine leading cryptocurrency firms have announced their intention to apply for the establishment of this industry association in mid-October. Furthermore, they’ve wasted no time in setting up a dedicated working group to expedite this transformative process.

Taiwan has been steadfast in its money-laundering combat measures

Taiwan has been steadfast in its commitment to combating money laundering within the virtual asset services provider (VASP) realm. Since July 2021, when the Financial Supervisory Commission introduced anti-money laundering regulations, VASPs have been required to adhere to strict compliance standards. However, the broader cryptocurrency industry has largely operated in a regulatory gray area.

The Financial Supervisory Commission (FSC) is poised to unveil a comprehensive set of guidelines concerning cryptocurrency trading and payments for VASPs by month’s end. This development has spurred the cryptocurrency firms to take proactive steps toward self-regulation by forming an industry association.

Wayne Huang, the co-founder and group CEO of XREX, a leading Taipei-based cryptocurrency exchange, expressed optimism about the FSC’s forthcoming guidelines. He believes these guidelines will “give birth to a new industry, providing this new industry legitimacy, oversight, a solid path to grow, and an accelerated means to acquire public trust.”