Taiwan created a regulatory framework for businesses related to the cryptocurrency industry
Since China eliminated crypto trading and mining on the mainland, many crypto projects have moved to friendlier shores. Meanwhile, Taiwan has been left out of the news on cryptocurrencies, mining, and regulations. Taiwan’s Ministry of Economy has created a regulatory framework for businesses related to the cryptocurrency or digital asset industry.
Taiwan to strengthen cryptocurrency regulations
Over the past two years, the companies working with cryptocurrencies, including trading and mining, have expanded significantly due to the large and rapid development of the industry as a whole.
According to the Cabinet meeting’s insights, the Financial Supervisory Commission (FSC) will serve as the main authority responsible. It’ll work with tax and law departments to set up rules to regulate the evolving but volatile cryptocurrency market.
“Cryptocurrency businesses will be listed under the category of finance, insurance, and real estate as virtual currency platforms and trading businesses rather than under the category of software design services,” the meeting concluded.
Taiwan strengthens cryptocurrency regulation. The Financial Supervisory Commission (FSC) will serve as the main authority responsible and work with tax and law departments to set up rules to regulate the evolving but volatile cryptocurrency market.https://t.co/AFLH7b8IhS
— Wu Blockchain (@WuBlockchain) November 15, 2021
Taiwan’s Ministry of Economic Affairs has taken a significant step on the digital assets front after formalizing the designation of cryptocurrencies. It also appointed a supervisory authority to lead regulations associated with this emerging ecosystem.
The category change has leveled a large amount of regulation on crypto-related companies, which will now have to work under different policies and tighter regulatory scrutiny. The main responsibility for regulation will rest with the Financial Oversight Committee. The regulator will be responsible for the tax, and the regulatory law departments will develop a new set of rules for crypto-related companies.
Clara Tsao, Founding Officer and Director of the Filecoin Foundation, certainly agrees. In an online forum, Tsao stated that such movements could present a great opportunity for Taiwan to promote the development of cryptocurrencies, especially since China withdrew its participation.
“Hopefully, Taiwan can be on the positive green side too … I think a lot of regulators in Taiwan are still wrapping their head around what exactly blockchain versus DeFi versus everything else is”, he stated.
This could also turn out to be worse, with the designations above giving way to tighter regulations in the future. Either way, this is a step forward, a step towards legitimizing the emerging asset class.
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