Taiwanese lawmakers are reportedly gearing up to introduce the initial draft of a special law aimed at regulating cryptocurrency-related businesses by the end of November 2023. The move comes as officials in Taiwan express growing concerns about activities in offshore crypto markets and aim to prevent what they refer to as "regulatory arbitrage."
Chiang Yong-chang, an official from Taiwan's Legislative Yuan, has revealed his intentions to present the first draft of the cryptocurrency regulation law to Congress for review, potentially even before November ends. He emphasized that cryptocurrency assets differ significantly from traditional financial products and warrant specialized legal oversight.
To address these concerns and foster a well-regulated crypto environment, Chiang held a public hearing in Taiwan's parliament on October 6. The session included participation from various stakeholders in the digital asset industry, such as digital asset service providers and academic experts. It aimed to discuss the draft proposal and gather insights from relevant parties.
Earlier, Taiwan's Financial Regulatory Commission took steps to enhance cryptocurrency investor protection by issuing comprehensive guidelines on September 26. These guidelines encompass rules spanning the entire crypto industry, covering aspects like the segregation of customer and exchange assets, review mechanisms for digital asset listings and delistings, and requirements for foreign virtual asset service providers to obtain local regulatory approvals before operating in Taiwan. In a coordinated effort, major cryptocurrency exchanges in Taiwan have also formed an association dedicated to advancing industry interests.
