24 Crypto Firms Join Forces to Set Up Self-Regulatory Standards in Taiwan
A group of 24 cryptocurrency companies have united to establish the Taiwan Virtual Asset Service Provider (VASP) Association, with the goal of creating self-regulatory guidelines for the digital asset industry in Taiwan.
In an official announcement made on June 13, Titan Cheng, the founder and CEO of BitoPro, has been appointed as the chair of the association, while Winston Hsiao, the chief revenue officer of XREX, will serve as the vice chair.
The consortium has pledged to advocate for strong and fair regulations that will support the global expansion of blockchain finance.
Combatting Fraud with Taiwan’s VASP Association
Working in partnership with the government, the Ministry of Justice, and law enforcement agencies, the association aims to combat fraud and other illicit activities within the industry.
As a member of the association, XREX has committed to providing technology, industry expertise, and infrastructure to create a unified defense platform and develop international transfer regulations that align with Taiwan’s standards.
This includes developing technology for monitoring currency flows and tracking that is in line with Taiwan’s anti-money laundering and fraud patterns.
The establishment of the VASP association comes after a proposal by Taiwan’s Justice Ministry to revise the Anti-Money Laundering (AML) regulations for virtual asset service providers.
Non-compliant entities could face penalties of up to two years in prison or fines of up to $1.5 million.
In addition, Taiwan’s Financial Supervisory Commission (FSC) has announced plans to introduce new regulations for digital assets in September.
Hsiho Huang, a director from the FSC, stated, “The formation of the association will encourage more collaboration and consensus within the industry, promote compliance, standardization, and healthy growth, ensure industry safety, transparency, and stability, and enhance consumer protection.”
Taiwan Pushes for Crypto Regulations
Taiwan is gearing up to impose restrictions on offshore cryptocurrency exchanges operating within its jurisdiction unless they obtain the necessary registration.
Last year in September, the FSC of Taiwan drafted ten guiding principles for VASPs to establish self-regulatory rules.
These principles, set to be officially released by the end of the month, will focus on enhancing information disclosure, setting standards for virtual asset listing and delisting, and ensuring the segregation and safekeeping of companies’ and customers’ assets.
The FSC will strictly prohibit illegal business solicitation by foreign crypto firms and mandate foreign VASPs to register in compliance with company law and declare their adherence to anti-money laundering regulations.
Failure to comply will result in these firms being prohibited from soliciting business from Taiwan or its residents.
