Taiwan Strengthens Oversight with New Crypto Guidance
Taiwan's Financial Regulatory Body Sets New Guidelines for Strengthened Crypto Oversight
In a bid to bolster oversight within the cryptocurrency industry, Taiwan's Financial Supervisory Commission (FSC), which took charge of supervising the sector in March, has introduced comprehensive guiding principles. These principles are primarily aimed at safeguarding the interests of customers. They encompass a range of measures including the imperative separation of client funds from company assets, the promotion of transparent operational practices, and the reinforcement of internal controls and management within crypto enterprises.
Outlined in the new guidelines are significant directives. Crypto issuers will now be obligated to release a white paper, while exchange platforms are required to establish a robust evaluation process for the inclusion and exclusion of virtual assets. Furthermore, the regulatory body insists on the clear demarcation of platform assets from customer assets, underscoring the critical importance of this demarcation. Foreign companies operating in Taiwan will be obliged to undergo local registration in strict adherence to corporate and anti-money laundering regulations before they can extend services to customers.
The global crypto arena has seen a surge in regulatory initiatives, particularly following the upheaval in the market in 2022. There is now an amplified emphasis on how companies manage and segregate client assets. This was underscored by revelations in the bankruptcy proceedings of the crypto exchange FTX, which suggested possible intermingling of customer funds with company holdings.
The FSC drew upon recent crypto regulatory frameworks implemented by the European Union, Japan, and South Korea as it fortified its own regulatory structures. In a press release, the commission asserted that industry participants and self-regulatory bodies will be summoned to set benchmarks based on these fresh guiding principles, thereby providing additional fortification for customer protection within the crypto sphere.
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