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Taiwan aims for crypto law by November: Report

Taiwan aims for crypto law by November: Report


Lawmakers in Taiwan are reportedly aiming to push out a first draft of a special law by the end of November 2023, according to a report from the Block. 

Yung-Chang Chiang, an official in the Legislative Yuan of Taiwan, said in an interview that he intends for the first draft to be available for reading by parliament by the end of November or sooner and that such an act is “necessary” to regulate crypto-related businesses.

This comes as lawmakers in Taiwan have growing concerns over activity in offshore markets and seek to avoid “regulatory arbitrage.” Chiang says crypto assets differ from traditional financial products and need to be governed via a special law.

On Oct. 6 he held a public hearing in the Taiwanese parliament including digital asset service providers, academics and others in the industry which discussed the draft proposal.

Related: Taiwan watchdog FSC to assume authority on crypto regulation

This follows guidelines released on Sept. 26 by Taiwan’s Financial Supervisory Commission (FSC) which moved to improve cryptocurrency investor protections.

The guidelines included rules blanketing the industry including separating assets in exchanges’ treasury from those of the customer, along with mechanisms for reviewing the listing and delisting of digital assets.

Additionally, the rules state that foreign virtual asset service providers cannot provide services in Taiwan without the necessary approvals from local regulatory authorities.

On the same day, major cryptocurrency exchanges operating in Taiwan formed an association to advance industry interests. 

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