Taiwan is increasing its regulation of the cryptocurrency industry in response to the market upheaval caused by the collapse of the FTX crypto empire.
According to a report, the country’s top financial regulator, the Financial Supervisory Commission (FSC), will likely be appointed as the primary regulator of cryptocurrency exchanges and virtual assets by the end of this month.
The report noted that the Taiwanese cabinet and the FSC have been working with government departments and industry representatives to develop a specific plan.
If the decision to appoint a regulator for the cryptocurrency sector is confirmed, this would be the first time the Taiwan government officially designates a regulatory body for a specific industry. It also marks a shift from Taiwan’s previous approach of being relatively uninvolved in the cryptocurrency industry.
Huang Tien-mu, Chairman of the FSC, stated that the organization would comply with the instructions of the cabinet for the subsequent actions, which also include determining the timing of any declarations.
Tien-mu noted that the FSC would focus on regulating virtual assets related to payment and trading, while other government departments would be responsible for the rest. He clarified that non-fungible tokens would not fall under the FSC’s jurisdiction. He also stressed that it is too early to consider creating separate legislation for virtual assets.
The report also mentioned that crypto exchanges are seeking support from local companies to push for more relaxed regulations in response to impending changes. In a joint paper sent to Bloomberg, Matrixport Technologies and Woo Network LLC have called for regulations that provide clarity and are more favourable to players operating in Taiwan.
With this move, Taiwan joins the other countries in the Asia-Pacific region to pick a stance on crypto regulation. Countries like Singapore have crypto-friendly regulations while China, though still sticking to its blanket crypto ban, is subtly supporting crypto initiatives in Hong Kong.
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