In a recent move, Taiwan government has come forth with a new crypto regulatory framework aimed at facilitating innovation. The proposed framework aims to facilitate the process of establishing industry associations for crypto companies.
According to local media reports, Taiwan had proposed a new business category to enable crypto firms to establish industry associations. Notably, this move is aimed at fostering the development of self-regulatory guidelines.
On Thursday, the Ministry of Economic Affairs announced that it has drafted an amendment to the Standards of Classification of Commercial Group regulations to add a category for digital asset services. Then government officials then confirmed to media that the newly proposed business category highlights the scope of operations within the crypto sector.
Notably, this includes activities such as exchanging cryptocurrencies for legal tender or other digital tokens along with facilitating the transfer of crypto assets. Additionally, it mentions providing services for storing crypto or management, and offering assistance related to the issuance or sale of crypto.
The official opined to media that crypto firms can form industry associations once the business category is added to relevant regulations. Additionally, the ministry is seeking public opinion and is expected to finalize the amendment with the Ministry of the Interior by October.
Notably, Taiwan has been working on strengthening regulation for entities operating in the region. To this, the regulators mandated virtual asset services providers (VASPs) to comply with its anti-money laundering laws since the Financial Supervisory Commission introduced anti-money laundering rules in July 2021. Otherwise, the industry remains largely unregulated in the country.
Now, with its recent step of setting up an industry association, crypto firms can then come up with self-supervisory rules. Simultaneously, Taiwan’s FSC, which was appointed in March as the main regulator overseeing the crypto industry, is currently working on a broader set of guidelines on trading and payments related to crypto assets for VASPs.
It is worth noting that Taiwan’s attitude to crypto stands very different to its neighbors like China who has a strict no for the industry. However, with the aim to facilitate the process for crypto entities, the nation shows a stance similar to Hong Kong, which has been off lately rising as the Asian crypto hub.
Notably, several Asian nations are working on their crypto regulations and aim to give strong competition to US and other global locations which have been nurturing crypto firms. In this race, Hong Kong has announced several crypto friendly measures while prioritizing the compliance to anti-money laundering laws.