Taiwan Will Soon Draft Special Laws For Crypto Asset Regulations

Taiwan immediately drafted a Special Law for Crypto Asset Regulation (photo: dock. crypto.com)

Legislators in Taiwan are targeting to draft the first draft of a special law by the end of November 2023. This was reported by The Block.

Yung-Chang totalsung, an official at Taiwan's Legislative Yuan, said in an interview that he wanted the first draft to be ready to be read by parliament by the end of November or sooner. According to him such legislation is "needed" to regulate crypto-related businesses.

This is because legislators in Taiwan are increasingly concerned about activities in overseas markets and are trying to avoid "arbitrational regulations." Howls say crypto assets are different from traditional financial products and need to be regulated through special laws.

On October 6, he held a public hearing in Taiwan parliament involving digital asset service providers, academics, and others in the industry discussing the draft proposal.

It follows a guidance released on September 26 by Taiwan's Financial Supervisory Commission aimed at increasing the protection of crypto investors.

The guidelines include rules that include all industries, including asset separation in the cash of a customer-owned exchange company as well as a mechanism to review the records and revocation of digital assets.

In addition, the regulation states that foreign virtual asset service providers cannot provide services in Taiwan without the necessary approval of local regulatory authorities.

On the same day, a large crypto exchange operating in Taiwan formed an association to advance the interests of the industry.