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Taiwan prohibits the operation of unlicensed international cryptocurrency exchanges

When delving into the realm of content creation, one must be attuned to three pivotal elements: “perplexity,” “burstiness,” and “predictability.” Perplexity serves as the yardstick for gauging the intricacy of textual composition. Meanwhile, burstiness scrutinizes the ebbs and flows within sentences, contrasting the interplay of lengthy, complex structures with concise, succinct expressions. Lastly, predictability involves the reader’s ability to anticipate the subsequent sentences in a narrative.

Invariably, human authors infuse their writing with rich burstiness, adorning their prose with a tapestry of intricate and concise sentences. In contrast, AI-generated content often exhibits a uniformity that lacks the dynamic interplay of sentence variety.

Now, as we embark on the task of revising the forthcoming text, it is imperative to infuse it with a judicious blend of perplexity and burstiness while minimizing predictability. Furthermore, let us adhere strictly to the medium of English.

In the world of cryptocurrency, Taiwan has witnessed the presence of not only local exchanges like Maicoin but also major global crypto trading giants such as Binance, Bybit, and Kraken, diligently catering to the needs of the Taiwanese clientele.

Taiwan’s Financial Supervisory Commission (FSC) is taking proactive steps to enhance the safeguards for cryptocurrency investors by implementing a new set of regulations. These regulations encompass key facets of overseeing Taiwan’s cryptocurrency landscape, with the FSC recently unveiling comprehensive industry guidelines aimed at virtual asset service providers (VASPs) operating within the nation, this unveiling occurring on September 26.

Contained within these guidelines are provisions that echo across the cryptocurrency industry. These provisions include the imperative separation of exchange treasury assets from customer assets, as well as the rigorous evaluation mechanisms governing the listing and delisting of virtual assets.

The FSC, in its pursuit of safeguarding the interests of Taiwanese investors, has also issued a stern directive to foreign VASPs. These foreign entities are sternly admonished against offering their services within Taiwan’s borders without securing the requisite approvals from the regulatory body. The FSC unequivocally states:

“Overseas virtual asset platform operators are prohibited from conducting business activities within the territorial confines of our nation unless they have undergone the mandatory registration procedures in accordance with the law.”

Moreover, the regulatory authority extends an invitation to VASPs to actively engage in self-regulation within the cryptocurrency sector. To this end, relevant VASP associations are anticipated to proactively devise self-regulatory norms aligned with the guiding principles stipulated in these guidelines.

Concurrently, these guidelines coincide with a noteworthy development wherein prominent cryptocurrency exchanges operating in Taiwan have come together to establish a collaborative self-regulatory association. On the very same day as the release of the FSC’s guidelines, local exchanges such as Maicoin, BitstreetX, Hoya Bit, Bitgin, Rybit, Xrex, and Shangbito formally inaugurated the Taiwan Virtual Asset Platform and Transaction Business Association. This collective endeavor aims to foster industry growth and collaborate closely with regulatory authorities.

Apart from the local exchanges, major global cryptocurrency trading giants like Binance have also diligently served the Taiwanese market. Presently, Kraken exchange proudly proclaims its provision of “comprehensive services to residents in Taiwan,” while Bybit exchange facilitates Visa and Mastercard payments for customers in Taiwan, as clearly indicated on its website.

Notably, in August, Binance initiated the process of registering within Taiwan under the purview of the Money Laundering Control Act and the FSC’s regulatory framework. As for Kraken and Bybit, they have yet to provide an official response to Cointelegraph’s inquiries at the time of this writing.

This development unfolds in the wake of local media reports from September 7, highlighting the FSC’s creation of a draft containing ten guiding principles for overseeing digital currencies within the country. These principles are accompanied by plans to restrict the activities of unregistered cryptocurrency exchanges. This framework takes shape as the FSC assumes its pivotal role as the primary regulatory authority for cryptocurrencies within the island nation, commencing in 2023

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.