• Taiwan’s Financial Supervisory Commission (FSC) was selected to take primary responsibility for crypto regulations.
• The FSC will supervise crypto exchange platforms, separating their assets and customers‘ funds, as well as evaluate the possibility of a self-regulatory system.
• Taiwan is currently at the early stages of creating crypto regulations, offering a welcoming environment for digital currency projects.
Taiwan Orders Financial Watchdog to Regulate Crypto
Taiwan’s Financial Supervisory Commission (FSC) has been chosen to take on the primary responsibility for crypto regulations, as reported by Forkast News. The commission will start by supervising cryptocurrency exchanges and their product listings and customer protection measures. Additionally, the FSC will evaluate if establishing a self-regulatory system for local crypto platforms would be feasible.
Measures Taken by the Taiwanese Government
In July 2021, anti-money laundering rules for crypto service providers were announced in Taiwan. Moreover, in the summer of 2022, the Central Bank of Taiwan stated that it was working on its own central bank digital currency (CBDC). However, it didn’t disclose an approximate launch date yet.
Crypto Environment in Taiwan
The regulatory environment in Taiwan is quite friendly towards cryptocurrencies and digital asset projects. For example, Jason Fang from Sora Ventures moved his company there because he found that it offered more flexibility when it came to regulation than other countries did. This allowed them to explore and experiment with new ideas freely.
Non-Fungible Tokens Excluded From Regulations
Non-fungible tokens (NFTs) are excluded from scope of these regulations issued by the FSC so far and therefore not subject to any supervision or restrictions yet. It remains uncertain how they will be incorporated into future regulations or if they ever will be regulated at all in this country.
Overall, although still at its early stages of development when it comes to regulation concerning cryptocurrencies and digital assets, Taiwan offers an encouraging environment for such projects due to its flexible approach towards them which allows companies like Sora Ventures to innovate without fear of repercussions from authorities regarding their activities or initiatives on this space.