Taiwan’s Financial Supervisory Commission (FSC) has unveiled new guidelines for Virtual Asset Service Providers (VASPs) to enhance the protection of cryptocurrency users in the country. The guidelines require cryptocurrency exchanges operating under the FSC’s jurisdiction to separate and protect company treasury assets from customer assets.
They also establish standards for the listing and delisting of digital assets and emphasize transparency, secure asset custody practices, and strengthening internal controls within cryptocurrency firms. Foreign cryptocurrency firms looking to operate in Taiwan must register with the regulator and comply with anti-money laundering regulations. These regulations were initially introduced in July 2021.
In response to the FSC’s guidelines, major cryptocurrency exchanges in Taiwan are collaborating on the establishment of a self-regulatory association. These developments follow increased regulatory scrutiny in the global cryptocurrency market, with the FSC drawing inspiration from frameworks in the European Union, Japan, and South Korea. Binance, Kraken, and Bybit are among the exchanges considering participation in the new regulations.