Taiwanese legislators plan to draft a special cryptocurrency law by November 2023, emphasizing the need for a unique regulatory framework for crypto assets.
Key Takeaways
- Taiwanese legislators aim to introduce a special crypto law by November 2023.
- Yung-Chang Chiang, a Taiwanese Legislative Yuan official, expects the first draft to be available for parliamentary review by November’s end.
- The law is considered necessary to regulate crypto-related businesses and prevent regulatory arbitrage.
- A public hearing was held on October 6 to discuss the proposed legislation, involving digital asset service providers and industry experts.
Taiwan is moving forward with plans to establish a special crypto law, with the first text of the legislation expected to be unveiled by the end of November 2023. Yung-Chang Chiang, an official from the Taiwanese Legislative Yuan, emphasized the necessity of such a law to regulate crypto-related businesses.
This initiative arises as Taiwanese legislators become increasingly concerned about activities in offshore crypto markets and aim to prevent what is known as “regulatory arbitrage,” where entities exploit gaps in regulations.
Taiwan Plans Special Crypto Law by November 2023
According to a report from the Block, Taiwanese legislators intend to release the first text of a special law by November 2023’s end. Yung-Chang Chiang, a Taiwanese… #CryptoRegulation #News #Adoption https://t.co/xvUNYLGCff
— CoinXposure (@CoinXposure) October 6, 2023
Chiang argues that crypto assets are fundamentally different from traditional financial instruments, warranting the creation of a dedicated legal framework.
On October 6, a public hearing was conducted in the Taiwanese parliament, bringing together digital asset service providers, academics, and industry experts to discuss the proposed legislation.
This legislative effort follows the release of guidelines by Taiwan’s Financial Supervisory Commission (FSC) on September 26. These guidelines were designed to enhance investor protections in the cryptocurrency space. They encompass industry-wide rules such as the segregation of exchange treasury assets from customer assets and the establishment of mechanisms for reviewing the listing and delisting of digital assets.
Conclusion
The regulations stipulate that foreign service providers of virtual assets cannot offer their services in Taiwan without the approval of local regulatory authorities. Coinciding with these developments, prominent cryptocurrency exchanges operating in Taiwan recently formed an association aimed at advancing the interests of the crypto industry within the country.
