Taiwan Launches Self-Regulatory Crypto Industry Association

Taiwans cryptocurrency sector marked a significant milestone today with the official establishment of an industry association, guided by the government, as the nation moves closer to regulating this emerging sector.

According to a statement released Thursday by the group, 24 crypto firms that have registered with the Financial Supervisory Commission (FSC) for anti-money laundering (AML) compliance have joined the Taiwan Virtual Asset Service Provider Association.

The association will be led by Titan Cheng, founder and CEO of BitoPro, one of Taiwans prominent exchanges. Winston Hsiao, co-founder and chief revenue officer of XREX, will serve as the vice chair.

The formation of this crypto industry association represents a critical step for Taiwan in enhancing its oversight of cryptocurrency trading platforms. The government has mandated the association to develop self-regulatory rules.

Hsiho Huang, director of the securities firms division at the FSC, emphasized at the launch meeting on Thursday that the FSC places significant importance on the development of the virtual asset industry. Huang noted that the healthy development of this industry is closely tied to the progress of society and the economy.

The association announced that its primary task following the establishment is to formulate self-regulatory guidelines. These guidelines aim to implement the classification and grading management of Virtual Asset Service Providers (VASPs) effectively. This effort is intended to balance the interests and growth of the industry with government expectations and consumer protection.

Since the introduction of AML rules by the FSC in July 2021, Taiwan has required cryptocurrency service providers to comply with these regulations. However, the broader crypto industry remains largely unregulated.

In a move to tighten regulation, the Ministry of Justice proposed amendments to existing AML laws last month. These amendments would require both domestic and international crypto firms intending to operate in Taiwan to register for AML compliance. Non-compliance could result in imprisonment for up to two years.