Technology

Taiwan Targets Offshore Platforms In Crypto Regulations Draft – Crypto News

Published

2 years ago

September 7, 2023

Dripp

The Financial Supervisory Commission in Taiwan has introduced new guidelines to tighten regulations surrounding cryptocurrencies and virtual assets. According to a Central News Agency report, the main focus is restricting offshore platforms from operating in Taiwan without proper registration and compliance.

Overseas Platforms Must Register to Operate in Taiwan

The Commission has finalized 10 principles expected to be officially published by the end of September. The rules aim to improve practices related to information disclosure, internal controls, and AML/CFT compliance and prohibit illegal solicitation by overseas exchanges.

A key priority is curbing unlicensed offshore cryptocurrency platforms from conducting crypto business in Taiwan or soliciting citizens without following domestic registration and compliance requirements.

The guidelines stipulate that overseas entities must register per the Company Law and submit AML/CFT compliance statements to the Commission to operate in Taiwan. Failure to do so prohibits conducting any business in the Taiwanese crypto market.

For domestic platforms, comprehensive regulations cover reviewing and listing tokens, publishing issuer whitepapers, separating customer and company assets, enacting robust security and critical management systems, increasing transparency through transaction info disclosures, and implementing anti-money laundering controls.

The rules also dictate that individual crypto dealers must uphold AML/CFT measures on par with legal entities. All platforms would be subject to potential audits by the Commission as the designated regulatory body.

Part of a Progressive Regulatory Approach

According to officials, these 10 principles represent the initial phase of crypto oversight in Taiwan, to amend formal regulations eventually. After publishing the guidelines, industry associations would formulate additional self-regulatory standards. The Commission plans to monitor international best practices and revise policies accordingly through a progressive approach.

The move demonstrates Taiwan’s aim of balancing innovation and oversight by focusing initial rules on information disclosure, consumer protection and limiting unlicensed offshore operators. Regulators hope this allows domestic players to expand services in a compliant ecosystem.