Taiwan establishes crypto industry association as government moves towards regulation

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Winston Hsiao

14th June 2024 – (Taipei) An industry association was officially formed today under the guidance of the government. This move signifies the country’s progress towards regulating the burgeoning industry.

The newly established Taiwan Virtual Asset Service Provider Association has garnered participation from 24 crypto firms that have registered with the Financial Supervisory Commission for anti-money laundering compliance. The association’s leadership will be helmed by Titan Cheng, the founder and CEO of BitoPro, a prominent exchange in Taiwan. Winston Hsiao, the co-founder and chief revenue officer of XREX, will serve as the association’s vice chair.

The establishment of this industry association represents a crucial step for Taiwan in enhancing its oversight of crypto trading platforms. The government has mandated that the association formulate self-supervisory rules to ensure responsible industry practices.

During the launch meeting on Thursday, Hsiho Huang, the director of the securities firms division at the FSC, emphasized the government’s commitment to the virtual asset industry’s development. Huang stated, “The FSC places great importance on the development of the virtual asset industry. We believe that the healthy development of this industry is closely related to the development of society and the economy.”

The primary task of the association following its establishment is the formulation of self-regulatory guidelines. The aim is to effectively implement the classification and grading management of Virtual Asset Service Providers (VASPs). By doing so, the association seeks to align with the government’s expectations, protect consumer rights, and foster the interests and growth of the industry.

Although Taiwan introduced anti-money laundering rules in July 2021, requiring cryptocurrency service providers to comply with AML laws, the crypto industry still largely operates without comprehensive regulation. However, last month, the Ministry of Justice proposed amendments to existing AML laws that would necessitate domestic and overseas crypto firms wishing to operate in Taiwan to register for AML compliance. Failure to do so could result in imprisonment for up to two years.