Cryptocurrency service providers and exchanges in Taiwan are now required to follow new guidelines set by the Financial Supervisory Commission (FSC) following the collapse of the FTX exchange last year. The FSC hopes that these new guidelines will help to establish a self-regulating mechanism for the industry, which will in turn enable service providers to monitor their own legal, ethical, and security standards.
Crypto Guidelines Released by Taiwan’s FSC
Today, the Financial Supervisory Commission (FSC) in Taiwan released a set of guidelines for the crypto sector. The guidelines include information disclosure, asset separation, money laundering prevention, promoting institutional auditing, managing hot and cold wallets, and protecting consumers’ interests.
The FSC’s regulatory approach should allow the local crypto sector room for further development and innovation. However, if the guidelines are too cumbersome, they may stifle the development of Taiwan’s crypto sector and push local investors toward offshore platforms.
We will continue to monitor the situation and provide updates as they become available.
The FSC is proposing that it reserve the power to inspect domestic crypto platforms in order to ensure consumer protection. It is also asking foreign firms to comply with Taiwan’s consumer protection and financial regulations.
Finally, the FSC will review and adjust its regulatory measures on a rolling basis to ensure the sector’s long-term development.