Taiwan’s Parliament Passes The First Reading Of Proposed Crypto Legislation
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Taiwan’s parliament has passed the first reading of a proposed crypto legislation. This bill seeks to address the concerns around the fast-growing crypto market. The bill will also enhance the regulatory framework across the crypto asset industry to ensure traders better understand the market.
Taiwan Legislatures Shift Focus To Crypto Regulation
Taiwan has unveiled the first steps towards crafting the appropriate crypto regulation in the state. The Virtual Asset Management Ordinance Draft bill seeks to bring regulatory clarity to the Taiwanese cryptocurrency industry.
The first reading of this bill was passed by the Legislative Yuan, which is the Taiwanese parliament. 17 lawmakers co-authored this bill. These lawmakers argue that crypto assets differ from traditional financial products and need a special regulatory framework.
The goal behind this bill is to create an appropriate regulatory framework. It will also create the necessary oversight for the cryptocurrency industry.
The Financial Supervisory Commission (FSC), the regulatory authority in Taiwan, has previously crafted the guidelines needed for the crypto industry. This proposed bill will offer the legal enforcement needed for crypto businesses. The guidelines will offer much-needed clarity for the crypto industry.
Ensuring Crypto Compliance
Without the required crypto framework, virtual asset service providers need compliance with anti-money laundering guidelines. Nevertheless, the cryptocurrency market remains largely unregulated.
This proposed guideline will set the needed operational standards needed by asset operators. The offering will also boost customer protection and mandate crypto platforms operating in Taiwan to secure a permit.
Under the proposed regulatory framework, exchange operators will be required to allow regulatory agencies such as the FSC to inspect their systems regularly. The regulator currently lacks a strong position on stablecoins or derivatives.
This offering will also restrict the trading of virtual assets to professional investors. It will also mandate the use of third-party custodians to preserve crypto assets.
The date for the second reading of this bill has not been announced. However, before the bill is passed, it will need input from the FSC.
The legislators are awaiting the FSC’s input, according to Yung-Chang, a member of the Legislative Yuan and a co-author of the bill. Yung-Chang opined that the FSC’s version of this bill will ensure industry players have a consolidated consensus on the best way to regulate the cryptocurrency industry and pave the way for a robust legal framework.