Taiwan to Draft Crypto Law to Address Regulatory Concerns
Taiwan has mandated AML compliance for virtual asset service providers since July 2021, but the rest of the crypto industry remains unregulated
Taiwanese lawmakers plan to draft a special crypto law by November 2023. The goal is to address the growing concerns about offshore crypto exchanges and prevent the exploitation of regulatory loopholes by the crypto industry.
On Oct 6, Yung-Chang Chiang, a member of the Legislative Yuan, Taiwan’s parliament, held a public hearing at the parliament to discuss the draft proposal with virtual asset services providers, legal experts, and academics.
The proposed law would require all crypto platforms in Taiwan to apply for a permit and those failing to do so could be asked to cease operations.
While talking about the new law, Chiang explained, “In this case, under the authority of this special law, regulatory authorities can impose administrative penalties on operators who violate these self-regulation rules. Without such a special law, the regulators would lack the ability to impose penalties.”
Chiang emphasised the need for a dedicated crypto asset act to govern crypto companies. He asserted that cryptos are distinct from traditional financial products and require separate regulations.