In Taiwan’s legislative corridors, a concerted effort is underway to craft an inaugural draft of a unique law pertaining to offshore exchanges, and the target date for its completion is firmly etched at the close of November 2023.
This legislative endeavor in Taiwan has reportedly captured the attention of The Block, a notable source in the world of crypto reporting. According to sources, Yung-Chang Chiang, a prominent figure in the Legislative Yuan of Taiwan, expressed his intent in an interview. He aspires to present the inaugural draft for parliamentary perusal, hopefully before November draws to a close. His conviction about the necessity of such an act lies in its power to provide regulatory oversight to businesses operating in the crypto sphere.
These developments unfurl against a backdrop of growing unease among Taiwanese lawmakers, specifically in regards to offshore market activities. They harbor concerns about the specter of “regulatory arbitrage” and firmly contend that crypto assets, unlike their traditional financial counterparts, demand specialized legislative attention.
As a testament to their commitment to transparency and stakeholder engagement, Yung-Chang Chiang hosted a public hearing in the Taiwanese parliament on October 6th. The gathering brought together a diverse assembly, including digital asset service providers, scholars, and industry experts, all of whom dissected the blueprint of the proposed law.
This narrative gains further context from the release of comprehensive guidelines on September 26th by Taiwan’s Financial Supervisory Commission. These guidelines encompass a broad spectrum of regulations aimed at bolstering investor protections within the cryptocurrency sphere. Key provisions include strict segregation of assets held in exchange treasuries from those belonging to customers, as well as established mechanisms for the meticulous review and removal of digital assets from trading platforms.
Supplementing these measures, the regulations make it abundantly clear that foreign virtual asset service providers must obtain the requisite approvals from local regulatory authorities to operate within the Taiwanese landscape.
Coinciding with this regulatory fervor, major cryptocurrency exchanges that operate within Taiwan came together to form a collaborative association. Their mission: to collectively advance the interests of the burgeoning crypto industry on the island.
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