Taiwan’s burgeoning cryptocurrency sector has taken a significant step towards a more structured future with the official launch of the Taiwan Virtual Asset Service Provider Association (TVASPA). This industry association, formed under government guidance, marks a crucial moment for the country as it navigates the path of regulating the dynamic world of cryptocurrencies.
The TVASPA boasts 24 founding members, all crypto firms that have already registered with Taiwan’s Financial Supervisory Commission (FSC) for anti-money laundering (AML) compliance. This focus on AML compliance reflects Taiwan’s existing regulatory framework, which mandated such adherence for crypto service providers since July 2021. However, the broader crypto landscape remains largely unregulated.
The association, led by Titan Cheng (CEO of major Taiwanese exchange BitoPro) and Winston Hsiao (co-founder and CRO of XREX), will play a key role in shaping the future of crypto regulation in Taiwan. The government has tasked the TVASPA with formulating self-supervisory rules, aiming to establish a system for classifying and grading virtual asset service providers (VASPs). This classification system, according to the TVASPA, will strive to balance the interests of the industry with consumer protection and government expectations.
The launch of the TVASPA aligns with the FSC’s vision for the responsible development of the virtual asset industry. “We believe a healthy crypto industry is vital for societal and economic progress,” stated Hsiho Huang, director of the securities firms division at the FSC, at the association’s launch meeting.
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This move follows proposed amendments to Taiwan’s existing AML laws put forth by the Ministry of Justice last month. These amendments would require both domestic and foreign crypto firms operating in Taiwan to register for AML compliance, with failure to do so potentially leading to imprisonment.
The establishment of the TVASPA signifies Taiwan’s commitment to fostering a robust and well-regulated crypto ecosystem. With its focus on self-regulation and consumer protection, the association is poised to play a pivotal role in shaping the future of crypto in this East Asian nation.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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