Taiwanese lawmakers are reportedly striving to have the first draft of a special law ready for parliament to read by the end of November 2023. Yung-Chang Chiang, an official from the Legislative Yuan of Taiwan, has stated that such a law is essential to regulate crypto-related businesses. This is due to mounting concerns regarding activities in offshore markets and the need to avoid “regulatory arbitrage”.
On October 6th, a public hearing was held in the Taiwanese parliament, where digital asset service providers, academics, and industry leaders discussed the draft proposal. This follows the Financial Supervisory Commission of Taiwan issuing guidelines to improve cryptocurrency investor protections on September 26th. These guidelines include the separation of assets in exchanges’ treasury from those of customers, and the mechanisms for reviewing the listing and delisting of digital assets. Additionally, the guidelines state that foreign virtual asset service providers cannot provide services in Taiwan without the necessary approvals from local regulatory authorities. On the same day, the major cryptocurrency exchanges operating in Taiwan formed an association to advance industry interests.
