The cryptocurrency bill has been officially presented to the parliament in Taiwan. If the special cryptocurrency law is accepted and implemented, all cryptocurrency platforms operating in Taiwan will be required to apply for permission. There is no specific timeline yet for the second readings of the cryptocurrency law.
Taiwan’s Special Cryptocurrency Bill Passes First Readings
Taiwan officially introduced a cryptocurrency law for the first reading in the parliament. According to official records, the proposed bill to regulate cryptocurrencies passed the first readings in Taiwan’s Legislative Yuan.
Yung-Chang Chiang, the legislator who jointly proposed the special law, stated, “After the first readings of the bill, discussions about the regulatory framework for the cryptocurrency industry have moved to the next stage. We hope that the Financial Supervisory Commission (FSC) can submit its own version of the bill to the legislative body, allowing various sectors of society to further strengthen consensus throughout the process.”
While Taiwan’s FSC published guidelines last month for the cryptocurrency sector to establish its own self-regulatory rules through a potential industry alliance, lawmakers noted that such measures lacked legal enforceability. In a parliamentary session earlier this month, Chiang stated, “In this case, under the authority of this special law, regulatory authorities can impose administrative penalties on operators who violate these self-regulatory rules. Without such a special law, regulatory agencies will be deprived of the power to impose penalties.”
Uncertainty Surrounds Second Readings of the Bill
The special cryptocurrency bill proposed by Chiang and 16 other legislators makes it mandatory for all cryptocurrency platforms operating in Taiwan to obtain permission to operate. If platforms fail to obtain the necessary permits, regulators can order them to cease operations in the country.
There is no specific timeline for the second readings of the bill, but according to Chiang’s office, the second readings may not take place until the end of January 2024. The current term of all legislators in Taiwan will expire in January next year.
Currently, since the Financial Supervisory Commission (FSC) implemented anti-money laundering rules in July 2021, cryptocurrency service providers in Taiwan are required to comply with anti-money laundering laws. Apart from this, the cryptocurrency industry in the country remains largely unregulated.
