Crypto exchanges in Taiwan have announced the formation of an association to promote the interests of the crypto industry, while the local Financial Supervisory Commission (FSC) has tightened regulations for foreign virtual asset service providers (VASP).
Taiwan has formed the Virtual Asset Platform and Transaction Business Association, with local crypto exchanges MaiCoin Group, BitoGroup, and Ace Exchange as its first members.
The association is focused on lobbying the industry’s interests as the local crypto market regulator, the Financial Supervisory Commission (FSC), has issued Guiding Principles for Managing Virtual Asset Platforms and Trading Businesses.
According to the new rules, foreign VASPs are required to obtain FSC authorization to do business in the region, while local virtual asset platform providers are instructed to comply with general industry regulations. Specifically:
- separating exchange-traded and client assets;
- reviewing the listing arrangements for virtual assets;
- ensuring consumer protection.
The FSC also called on local representatives of exchanges, peer-to-peer trading platforms, financial investment platforms, crypto wallets, and other crypto businesses to develop self-regulatory norms.
Wang Chenhuan, President of Ace Exchange, said members of the association will actively cooperate with the FSC to achieve the necessary consensus in regulating the local crypto market. In his opinion, Taiwanese VASPs should unite, collect, and exchange information so that regulatory standards can be developed with their interests in mind.
Notably, the preparatory group for the association was formed back in early September and consists of nine local cryptocurrency exchanges, including Bitgin, BitstreetX, Rybit, Shangbito, Xrex, and Hoya Bit. The initiative will legally come into force only after approval from the Taiwanese government.
The tightening of industry regulation comes amid the Central Bank of Taiwan actively exploring the possibility of launching a central bank digital currency (CBDC).