24 Crypto Firms Collaborate to Establish Self-Regulatory Standards in Taiwan

Crypto Regulation Taiwan
Last updated:
Author
Author
Ruholamin Haqshanas
About Author

Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

A consortium of 24 cryptocurrency companies has come together to form the Taiwan Virtual Asset Service Provider (VASP) Association, aimed at developing self-regulatory standards for the digital asset industry in Taiwan.

According to an official announcement on June 13, BitoPro founder and CEO Titan Cheng has assumed the role of chair and Winston Hsiao, chief revenue officer of XREX, will be serving as vice chair.

The group expressed its commitment to promoting robust and equitable regulations that foster the global growth of blockchain finance.

Taiwan’s VASP Association to Combat Fraud

The association, in collaboration with the government, the Ministry of Justice, and law enforcement agencies, aims to combat fraud and other criminal activities within the industry.

As a member of the association, XREX stated its intention to contribute technology, industry knowledge, and infrastructure to establish a joint defense platform and design international transfer rules that align with Taiwan’s requirements.

This includes developing currency flow scanning and tracking technology that is consistent with Taiwan’s patterns of money laundering and fraud.

The formation of the VASP association follows a proposal by officials from Taiwan’s Justice Ministry to amend the Anti-Money Laundering (AML) regulations for virtual asset service providers.

The proposed amendments could result in noncompliant entities facing up to two years in prison or fines of up to $1.5 million.

Additionally, Taiwan’s Financial Supervisory Commission (FSC) has announced plans to introduce new digital asset regulations in September.

“The establishment of the association will bring more cooperation and consensus to the industry, promote compliance, standardization and healthy development of the industry, ensure the safety, transparency and stability of the industry, and enhance the protection of consumer rights,” Hsiho Huang, a director from the FSC, said.

Taiwan to Push for Crypto Regulations

Taiwan is set to impose restrictions on offshore cryptocurrency exchanges

operating within its jurisdiction unless they gain the required registration.

In September last year, the country’s Financial Supervisory Commission (FSC) drafted ten guiding principles for VASPs to establish self-regulatory rules.

The guiding principles, expected to be officially released by the end of this month, will focus on various aspects.

More specifically, the guidelines are expected to strengthen information disclosure, establish review standards for virtual asset listing and delisting, and ensure the separation and custody of companies’ and customers’ assets.

The FSC plans to strictly prohibit illegal business solicitation by foreign crypto firms.

It will mandate foreign VASPs to register in accordance with company law and declare their compliance with anti-money laundering regulations to the FSC.

Failure to do so will result in these firms being barred from soliciting business within Taiwan or from domestic residents.

More Articles

DeFi News
Ethereum Foundation Allocates $120 Million of ETH to DeFi Protocols
Jimmy Aki
Jimmy Aki
2025-02-13 19:54:47
Blockchain News
Customs Hold Bitmain Equipment, Disrupting U.S. Bitcoin Mining Supply Chains
Hongji Feng
Hongji Feng
2025-02-13 18:53:47
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors