Taiwan has become more aware of risks involving cryptocurrencies since the collapse of the FTX exchange late last year, and is following in the footsteps of Singapore and Hong Kong in keeping a keener eye on the crypto sector.
Last week, the Financial Supervisory Commission (FSC) announced guidelines for crypto service providers and exchanges, 10 days after confirming that it oversees crypto-related investments and transactions nationwide.
It said it has received instructions from the Executive Yuan to oversee the crypto sector’s development in Taiwan. It is to focus on establishing a self-regulating mechanism for service providers that allows members of the sector to monitor their own legal, ethical and security standards, rather than acting as an outside regulatory agency that monitors and enforces those standards.
The guidelines include the disclosure of information by crypto service providers, the review procedure for the listing and removal of crypto products, the separation of assets between service providers and clients, and the assurance of transparency and fairness.
Preventing money laundering, protecting consumers’ interests, maintaining information security, promoting institutional auditing, and managing so-called “hot” and “cold” crypto wallets are also part of the guidelines.
As the commission seems to have no intention to establish special legislation on the crypto sector, but aims to focus on protecting consumers and preventing money laundering, its regulatory approach should allow the local crypto sector room for further development and innovation.
Except for the review procedure for the listing and removal of products, which could have a greater effect on the sector, other guidelines, such as information disclosure, asset separation and money laundering prevention, are all basic requirements that firms in the sector should implement.
Another reason that the commission does not want to act as a comprehensive regulatory body is that it is not easy to govern the crypto sector, let alone require cooperation from offshore service providers or exchanges to comply with Taiwan’s regulatory framework.
In general, it is welcome news that the regulator supports growth in Taiwan’s crypto sector and wants to help build the necessary ecosystem here, as it is an opportunity for the sector to build trust with the public and push its innovations toward the mainstream.
However, if the details of its guidelines, which are slated to be published by the third quarter of this year, are too cumbersome, it would likely stifle the development of Taiwan’s crypto sector and push local investors toward offshore crypto platforms, which would be contrary to the commission’s original intention of protecting consumers in devising a regulatory framework.
Moreover, as innovative blockchain applications and non-fungible tokens continue to emerge, the regulator does need to retain the flexibility of development in the sector and allow it to continue moving forward.
While doing everything at once is not an option for the commission, it must at least reserve the power to inspect domestic crypto platforms when things go wrong. It also has to work with crypto firms to establish a mechanism for consumer protection.
At the same time, the commission needs to ask foreign firms to comply with Taiwan’s consumer protection and financial regulations. Most importantly, it must continue to review and adjust its regulatory measures on a rolling basis to ensure the sector’s long-term development.
Would China attack Taiwan during the American lame duck period? For months, there have been worries that Beijing would seek to take advantage of an American president slowed by age and a potentially chaotic transition to make a move on Taiwan. In the wake of an American election that ended without drama, that far-fetched scenario will likely prove purely hypothetical. But there is a crisis brewing elsewhere in Asia — one with which US president-elect Donald Trump may have to deal during his first days in office. Tensions between the Philippines and China in the South China Sea have been at
Russian President Vladimir Putin’s hypersonic missile carried a simple message to the West over Ukraine: Back off, and if you do not, Russia reserves the right to hit US and British military facilities. Russia fired a new intermediate-range hypersonic ballistic missile known as “Oreshnik,” or Hazel Tree, at Ukraine on Thursday in what Putin said was a direct response to strikes on Russia by Ukrainian forces with US and British missiles. In a special statement from the Kremlin just after 8pm in Moscow that day, the Russian president said the war was escalating toward a global conflict, although he avoided any nuclear
US President-elect Donald Trump has been declaring his personnel picks for his incoming Cabinet. Many are staunchly opposed to China. South Dakota Governor Kristi Noem, Trump’s nomination to be his next secretary of the US Department of Homeland Security, said that since 2000, China has had a long-term plan to destroy the US. US Representative Mike Waltz, nominated by Trump to be national security adviser, has stated that the US is engaged in a cold war with China, and has criticized Canada as being weak on Beijing. Even more vocal and unequivocal than these two Cabinet picks is Trump’s nomination for
An article written by Uber Eats Taiwan general manager Chai Lee (李佳穎) published in the Liberty Times (sister paper of the Taipei Times) on Tuesday said that Uber Eats promises to engage in negotiations to create a “win-win” situation. The article asserted that Uber Eats’ acquisition of Foodpanda would bring about better results for Taiwan. The National Delivery Industrial Union (NDIU), a trade union for food couriers in Taiwan, would like to express its doubts about and dissatisfaction with Lee’s article — if Uber Eats truly has a clear plan, why has this so-called plan not been presented at relevant
RSS