Taiwan’s financial watchdog, the Financial Supervisory Commission (FSC), is expected to announce 10 guiding rules for virtual asset service providers (VASPs) by the end of the month. The regulator is expected to restrict offshore crypto exchanges from operating in Taiwan without proper compliance registration.
Guiding Rules for Crypto Service Providers
As part of the guiding rules prepared for offshore crypto service providers, Taiwan plans to restrict their operations in the country without proper compliance registration. According to a close source, the FSC has prepared 10 guiding rules for crypto service providers to develop their own self-regulatory rules.
An FSC official announced that the prepared rules will be officially published by the end of this month. According to the official, the rules cover various important issues such as enhancing transparency, establishing review standards for listing and delisting cryptocurrencies, and keeping the assets of crypto exchanges and customers separate and secure.
With the announced rules, foreign crypto exchanges will be banned from providing services illegally. The FSC plans to prohibit foreign VASPs from operating in Taiwan or serving local residents if they fail to register in accordance with company laws and declare their compliance with anti-money laundering regulations to the FSC.
Binance Awaits Approval for AML Compliance
Since implementing anti-money laundering rules in July 2021, Taiwan has made it mandatory for VASPs to comply with anti-money laundering laws. The world’s largest crypto exchange, Binance, applied for registration in Taiwan to comply with the country’s AML requirements.
Although Binance is currently an unregulated crypto exchange in Taiwan, according to the database of the Taiwan Ministry of Economic Affairs, it operates under a local company named “Binance International Limited Taiwan Branch (Seychelles)”. The registration information shows that the country’s administration approved Binance’s company registration on May 12, 2023, with a registered capital of 30 million Taiwanese dollars (937,000 dollars).
The Taiwan Ministry of Economic Affairs announced last month that it proposed adding a new business category that would allow companies in the crypto industry to establish industry associations. This move aims to encourage the development of self-regulatory guidelines.
