Tag: Taiwan

Taiwan’s Major Crypto Exchanges Form Association to Align with Upcoming Regulations

by Blockchain News

Key Takeaways

  1. Taiwan’s leading crypto exchanges form an industry association ahead of new regulations.

  2. The association aims to facilitate dialogue with regulators and integrate the crypto industry.

  3. Nine exchanges are currently part of the preparatory group for the association.

As Taiwan’s Financial Supervisory Commission (FSC) prepares to unveil its “Guiding Principles for the Management of Virtual Asset Service Providers (VASPs)” in September, the country’s major crypto exchanges have taken proactive steps. They have formed a preparatory group, known as the Taiwan VASP Association Preparatory Committee, in early September. The initiative is expected to become legally effective in October, following the government’s release of its crypto framework.

Unified Industry Efforts

The preparatory group consists of nine crypto exchanges, including the first three founders: MaiCoin Group, BitoGroup, and Ace Exchange. Other members are BitstreetX, Hoya Bit, Bitgin, Rybit, Xrex, and Shangbito. “The association is a family and a beacon. It guides us in the direction, collects information, sets standards, builds consensus, speaks on our behalf, and leads us to further progress,” said Wang Chenhuan, President of Ace Exchange.

Regulatory Alignment

The association aims to align with the upcoming regulations by the FSC. “We have a responsibility to lead industry partners in perfecting infrastructure and regulations,” said Zheng Guangtai, Founder and CEO of BitoGroup. He added that BitoGroup has accumulated rich experience in areas like cybersecurity, internal control, anti-money laundering, and counter-terrorism financing over the past decade.

Broadening the Ecosystem

The association is not limited to exchanges and aims to include other key players like traditional banks, fintech firms, accountants, and insurance companies. “The most important work at this stage is to play the role of internal communication. Only through unity and cooperation can we build a robust industry chain,” said Xiao Huizong, Co-founder and Chief Revenue Officer of Xrex.

Transparency and Future Plans

The preparatory group holds weekly meetings every Tuesday afternoon, and the minutes are publicly available on GitBook to ensure transparency. They plan to submit their application to the Ministry of the Interior by mid-October, aiming for the formal establishment of the Taiwan VASP Association by the end of the year.

Disclaimer & Copyright Notice: The content of this article is for informational purposes only and is not intended as financial advice. Always consult with a professional before making any financial decisions. This material is the exclusive property of Blockchain.News. Unauthorized use, duplication, or distribution without express permission is prohibited. Proper credit and direction to the original content are required for any permitted use.


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Taiwan Regulates Crypto Exchanges, Bans Unregistered Foreign Operators

by Blockchain News

Key Takeaways

  1. Taiwan’s Financial Supervisory Commission (FSC) releases new guidelines for Virtual Asset Service Providers (VASPs).

  2. Foreign VASPs are prohibited from operating in Taiwan without proper registration.

  3. The guidelines were released on September 26, 2023, and aim to improve investor protection.

Regulatory Framework

Taiwan’s Financial Supervisory Commission (FSC) has taken steps to regulate the cryptocurrency market by releasing guidelines for Virtual Asset Service Providers (VASPs) on September 26, 2023. The guidelines cover a range of issues, including the separation of exchange treasury assets from customer assets, mechanisms for listing and delisting virtual assets, and internal control systems.

Foreign VASPs Face Restrictions

The FSC explicitly stated that foreign VASPs are not allowed to provide services in Taiwan unless they have been registered in accordance with Taiwanese law. This move aims to ensure that all VASPs operating in the country adhere to local regulations and compliance standards.

Self-Regulation Encouraged

The FSC also encourages self-regulation within the cryptocurrency industry. VASP associations are expected to formulate self-regulatory norms based on the contents of the guiding principles. This comes as local exchanges like Maicoin, BitstreetX, Hoya Bit, Bitgin, Rybit, Xrex, and Shangbito have formed the Taiwan Virtual Asset Platform and Transaction Business Association.

Global Exchanges in Taiwan

Major global crypto trading firms like Binance have also been serving customers in Taiwan. Binance reportedly applied for registration in Taiwan under the Money Laundering Control Act. Other exchanges like Kraken and Bybit have been offering services to clients living in Taiwan.

Investor Protection

The FSC has emphasized the need for investor protection, especially in light of recent incidents involving foreign crypto exchanges. The guidelines are part of a broader effort to mitigate risks associated with the highly speculative nature of virtual assets.

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Vitalik Buterin Holds Taiwan Employment Gold Card

by Blockchain News

During a discussion in which Taiwan’s Digital Minister Audrey Tang, Matters’ co-founder and current CEO Zhang Jieping, and Ethereum’s co-founder Vitalik Buterin participated, an unexpected finding was made.

When Minister Tang was discussing Taiwan’s policy on the distribution of 6,000 yuan, he made a slip of the tongue that revealed Vitalik Buterin’s status as a bearer of the Taiwan Employment Gold Card. This information was made public by mistake.

The Taiwan Employment Gold Card is a one-of-a-kind program that was developed to persuade talented individuals from other nations to come to Taiwan and contribute to the economy of the country. This program was meant to attract workers who had degrees or certifications in a certain field.

The Card is a comprehensive document that integrates four essential permits: a work permit, a residence visa, an Alien Resident Certificate (ARC), and a re-entry permit. This integration allows the cardholder to legally work, live, prove their residency status, and travel in and out of Taiwan without the need for separate documents.

Cardholders can reside in Taiwan for a period exceeding 180 days. The card itself is valid for a duration ranging from 1 to 3 years. One of the significant advantages of this card is the flexibility it offers in terms of travel. During its validity period, the holder can exit and re-enter Taiwan an unlimited number of times without any restrictions.

This integrated approach simplifies the administrative process for professionals, making it more convenient for them to work and live in Taiwan. It reflects Taiwan’s commitment to attracting and retaining global talent by offering a streamlined process.

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Taiwan’s Financial Supervisory Commission Drafts New Crypto Regulations

by Blockchain News

Taiwan’s Financial Supervisory Commission (FSC) has drafted a set of guidelines to regulate virtual asset platforms, according to information obtained by Chain News. The draft, which is not yet finalized, consists of thirteen principles and related appendices. The guidelines are expected to be announced in September 2023.

Key Principles

Regulation from an Anti-Money Laundering Perspective: The FSC will supervise businesses from an existing anti-money laundering (AML) perspective, focusing on customer protection measures such as asset custody methods, transparency in transaction information, external expert guidance, and internal control management.

Issuance of Tokens, but Not Stablecoins: Businesses can issue virtual assets, but not stablecoins. The FSC believes that stablecoins could affect national sovereign currency and monetary policy.

Exchange Listing and Delisting Review Mechanism: Exchanges must establish review standards for listing and delisting virtual assets.

Asset Segregation: The FSC requires businesses to separate company assets from user assets, including both fiat and virtual currencies.

Fair and Transparent Trading: The FSC demands clear trading rules to ensure market fairness and avoid manipulation and conflicts of interest.

Banking Compliance: Businesses must comply with banks in executing customer identity verification and transaction monitoring for AML purposes.

Advertising and Disclosure: Businesses must avoid misleading advertising and must fully disclose product information.

Cold and Hot Wallet Proportions and Liability Insurance: Exchanges must define cold and hot wallet proportions and insure against user losses within their responsibility scope.

Illegal Contract Trading Punishable by Imprisonment: Illegal operation of virtual asset derivative financial products or securities-like virtual assets is punishable by up to seven years imprisonment and a fine of up to 3 million New Taiwan Dollars.

Virtual Asset Industry Association: The FSC encourages businesses to form a “Virtual Asset” industry association and establish self-regulatory rules.

Restrictions on Overseas Platforms Advertising in Taiwan: Overseas platforms may not advertise or engage in solicitation activities in Taiwan if they are not in compliance with local regulations.

Implementation of Travel Rule: Taiwan’s FSC is considering the implementation of the Travel Rule, requiring recording and reporting of information related to certain fund transfers.

Conclusion

The draft guidelines show that Taiwan’s government has researched multi-national regulatory norms and is encouraging industry self-regulation. The approach, which relies on AML principles and industry self-regulation, is seen as more flexible for industry development.

However, the lack of specific penalties for non-compliance and limited enforcement capabilities may result in limited consumer protection.

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Taiwan FSC to regulate crypto

by Blockchain News

According to the president of the authority, the Financial Supervisory Commission of Taiwan (FSC) will take over as the principal regulator of cryptocurrencies throughout the island nation.

According to the local United Daily News, the head of the Financial Supervisory Commission (FSC), Huang Tien-mu, made the announcement that the regulator would acquire supervisory responsibility over the cryptocurrency market in Taiwan.

On March 20, Huang gave a speech about the regulation of cryptocurrencies in the Republic of China before the Legislative Yuan in Taiwan (ROC). He said that the new crypto regulatory framework that will be implemented by the FSC would contain key laws and policies, such as the partitioning of consumer assets from corporate money and the implementation of investor protection procedures.

According to the source, the nation’s top administrative authority, known as the Executive Yuan, has given the Financial Supervisory Commission (FSC) the mandate to monitor payments and transactions in the cryptocurrency market at this time. Huang emphasized that other industry-related assets, such as nonfungible tokens (NFTs), may not come under the regulation of the Financial Stability Commission.

Huang also said that the Financial Supervisory Commission (FSC) will first focus a lot of emphasis on the concepts of self-regulation in the cryptocurrency market in Taiwan. The official continued by saying that the authority will act in accordance with the directives provided by the Executive Yuan.

According to a report that was published by Taiwan’s Central News Agency, Taiwanese legislators anticipate developing and approving an appropriate crypto legal framework by the end of March or at the earliest by the month of April. According to reports, the goal of the present preliminary plan is to place the oversight of the regulation of NFTs within the authority of the Ministry of Digital Affairs.

The announcement comes at a time when Taiwan is experiencing persistent tensions with China. The Chinese government views Taiwan as a renegade province, and it has pledged to bring Taiwan under its rule. China, which has emerged as a significant anti-crypto nation, will implement a total ban on crypto in 2021, in contrast to other jurisdictions in the Asia-Pacific area, such as Hong Kong or Singapore, which are crypto-friendly.

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Taiwan Moves to Ban the use of Credit Cards to Acquire Cryptocurrency

by Blockchain News

Taiwan through its Financial Supervisory Commission (FSC) has moved to ban the use of credit cards in purchasing cryptocurrencies.

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As per reports from local media, the FSC in a letter to the local banking association earlier in the month instructed credit card operators to sever ties with crypto firms.

 

According to the FSC, credit cards are payment tools for consumer goods and services and as such should not be used as payment options for financing speculative trade. In addition to that, credit cards cannot be used for futures and options trading, online gambling, and other related transactions.

 

The regulators also gave credit card companies three months to comply with the new directive. After the expiration of their period, the regulator’s audit team will monitor the level of compliance. After the blanket ban on crypto-related activities in China, Taiwan witnessed a boom in the sector with the bigger interest in NFTs. This had many in the sector touting it as the next crypto hub but this has since seamed down.

 

The FSC has also been very vocal about the nascent sector since after the Chinese ban in 2021. The regulator has made several press releases stressing the volatility of digital assets and the associated risks involved.

Although the crypto space in Taiwan is still not fully regulated. The East Asian country also introduced rules on anti-money laundering (AML) schemes in 2021. With the Terra-Luna collapse and the market downturn that has caused the loss of billions of funds in the industry, regulators around the world have tightened crypto rules.

Many countries have heavily regulated the sector with licensing mandates while others have outrightly banned crypto payments.

 

Taiwan works on it’s CBDC

In Spite of its stiff position regarding digital assets, Taiwan is working on its own Central Bank Digital Currency (CBDC). Preparation for the launch of the pilot is in top gear with the completion of the trial for its prototype.

Taiwan’s Apex bank has been working on cases of CBDC for two years and has a few hurdles to overcome before it becomes operational.

 

Upon launching of the digital currency, its citizens will be able to complete payment transactions without a credit card.

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Taiwan is Most Interested in NFTs, Says NFT Club Research

by Blockchain News

Taiwan is named where people are the most interested in non-fungible tokens (NFTs), according to research conducted by NFT Club.

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The research was conducted by using Google search data, through which NFT Club could identify countries with the most NFT-related searches.

In total, Taiwan had 9,629 NFT searches per 1000,000 people, Australia was second with 8,198 per 1000,000 people and Canada was third with 8,127 searches per 1000,000.

However, the reason behind the popularity of NFTs in these countries and regions has not been discovered.

NFTs have been gaining increasing popularity and marketplaces such as OpenSea have already featured record numbers of NFT listings and sales.

While the United States topped the chart for countries with the most number of NFT headquarters, the research stated.

The United States has a total of 91 NFT companies, Singapore is second with 24 and India is third with 11.

Meanwhile, Hong Kong is eighth with 6 NFT companies.

NFT Club’s research also found that the highest-funded NFT company was located in the United States. 

Forte Labs, which specialises in integrating blocking technology into games to enable a variety of features that allow for the inclusion of tokens and NFT trading, had raised $910 million in funding.

French company Sorare, which deals with a new way to play fantasy football using blockchain technology, was second with $747 million in funding raised. In third was Canadian company Dapper Labs – a company that develops NFT games and collections including NBA Top Shot and CryptoKitties – with $627 million funding raised.

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Bitmain stops shipment of Antminer crypto mining rigs into China

by Cointelegraph

Bitmain, a Chinese manufacturer of cryptocurrency mining equipment, has been forced to stop its business in China from Oct. 11 following the crypto ban imposed by local authorities.

In addition to China’s blanket ban on crypto operations, the company has attributed the move to stop shipping Bitcoin (BTC) and cryptocurrency mining rigs as a response to China’s carbon-neutral policies. According to Bitmain’s announcement:

“From October 11, 2021, Antminer will stop shipping to mainland China. For customers in mainland China who have purchased long-term products, our staff will contact them to provide alternative solutions.”

While the company is yet to reveal its plan to help existing customers in China, Bitmain will continue to supply Antminer crypto mining rigs to users across the world, including Taiwan and Hong Kong.

To counter the temporary slowdown in the Chinese market, Bitmain has increased its production capacity for mobile mining containers – Antbox. In November, the company will host World Digital Mining Summit 2021 in Dubai, where it will discuss green energy mining opportunities “mainly derived from clean energy power generation projects in Yunnan, Xinjiang” and other Chinese provinces.

Bitmain did not immediately respond to Cointelegraph’s request for comment.

Related: Hash rate and difficulty rebound shows miners have recovered from China exodus

Despite China’s recent ban on crypto activities, Bitcoin mining operations are on the path to full recovery as Chinese miners and investors move to friendly jurisdictions.

Cointelegraph reported that Bitcoin’s hash rate difficulty has increased 39% since late July. Moreover, Chinese media outlet Wu Blockchain pointed out that Bitcoin’s difficulty increased by 4.71% at block height 703,584 on Oct. 5, marking the sixth consecutive increase since July 31.

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Taiwan police arrest 14 suspects for scamming over 100 crypto investors

by Cointelegraph

Taiwan’s police administration has reportedly arrested 14 people for running a $5.41-million (150 million New Taiwan dollars) investment scam over the past year, involving more than 100 cryptocurrency investors.

CIB investigator Kuo Yu-chih said that the scam was led by a local businessman named Chen, who ran the operation on social media platforms. Chen was also reportedly running Azure Crypto Co, a Taipei-based platform that offered various investment services, including cryptocurrency transactions. He explained:

“Chen and his staff set up Web sites, and allegedly used photographs of pretty women to attract mainly male victims, many of whom were in retirement with substantial savings.”

According to the report shared by Taipei Times, the Criminal Investigation Bureau (CIB) has charged the suspects with fraud, money laundering and breaches of the Organized Crime Prevention Act.

According to Kuo, Chen and his team of scammers promised high returns on cryptocurrencies such as Ether (ETH), Tron (TRX) and Tether (USDT) while presenting themselves as financial advisers specializing in crypto mining.

The CIB started monitoring the firm’s activities after receiving complaints from one of the victims who had invested nearly $1.5 million (over 29 million New Taiwan dollars). After several months of investigation, the CIB raided the company office as well as the residences of Chen and his associates.

Related: US SEC releases fresh investor alert against crypto investment scams

Citing the growing number of scams across the world, the United States Securities and Exchange Commission published a new investor alert related to investment scams.

The SEC said that the main reason for scams and exploits is due to the crypto ecosystem’s “rising popularity.” Acknowledging investors’ sentiment behind the fear of missing out, the SEC has advised investors to weigh the risks and be on the lookout for a possible scam before investing.