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Taiwan’s regulator, the Financial Supervisory Commission (FSC) has announced new guidelines for virtual asset service providers (VASPs).
The agency published the VASP guidelines on Tuesday, which includes exchange registration, segregation of customer funds and prohibition of certain products.
Taiwan’s financial regulator, the Financial Supervisory Commission, has released new guidelines aimed at streamlining the crypto exchange space in the country. Specifically, the watchdog has outlined guidelines for virtual asset services providers (VASPs) as it looks to bolster its crypto regulation.
The new guidelines were highlighted in a new report the FSC published Tuesday, September 26, 2023. Wu Blockchain shared news of the development via X, including a link to the Financial Supervisory Commission’s publication.
Taiwan has officially released guidelines for cryptocurrency, Derivatives, STOs, and stablecoins are prohibited; overseas companies are not allowed to solicit customers; issuance of crypto assets need to disclose the environment impact; platforms must appoint accountants to issue…
— Wu Blockchain (@WuBlockchain) September 26, 2023
Foreign exchanges must register before offering services
Per the guidelines, crypto platforms must integrate and make public mechanisms for listing and delisting assets, segregation of customer funds from exchange assets and having a security management system in place. Information disclosures are also emphasised, with details on internal audits and other procedures a requirement.
More than that, the FSC says any offshore crypto exchange seeking to offer products and services must register before offering services to Taiwan customers.
“Overseas virtual asset platform operators are not allowed to solicit business within the territory of Taiwan or from Taiwan citizens, unless they have been registered in accordance with the Company Law, submitted to the Financial Supervisory Commission and completed a declaration of compliance with money laundering prevention laws,” a translation of the guidelines reads in part.
According to the FSC, VASPs will be allowed to form or join self-regulatory standards organisations.
The goal is to promote self-discipline within the industry, with relevant VASP associations outlining the standards and norms based that crypto platforms will need to embrace to enhance customer protection.
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