Taiwan Collaborates with El Salvador to Enhance Crypto Regulation

The Taiwan Cryptocurrency Association said that it has officially communicated with the Virtual Assets Bureau of El Salvador, the Central Bank, and the Presidential Office, Wu Blockchain reported. The regulators are advocating for the establishment of a Virtual Assets Bureau to enhance the regulatory capabilities. Meanwhile, Taiwan’s existing regulatory framework prohibits the issuance of stablecoins and the trading of cryptocurrency derivatives, emphasizing the need to support the industry and progress toward legislative solutions.

Taiwan’s Latest Move In Crypto Segment

In a recent public hearing organized by Taiwanese legislator Kuo Kuo-wen on “Virtual Asset Supervision,” crucial discussions surrounding the cryptocurrency industry took center stage. Among the topics under scrutiny were the potential creation of a dedicated “Financial Technology Bureau” and the introduction of leveraged derivatives trading. Distinguished representatives from cryptocurrency exchanges Binance and Bitfinex were in attendance.

Meanwhile, the recent action of the Taiwan Cryptocurrency Association aligns with global efforts by regulatory bodies to gain better control over the fast-growing and ever-evolving cryptocurrency sector. Notably, the establishment of a Virtual Assets Bureau is intended to oversee cryptocurrency trading and enhance consumer protection.

Taiwan, also known as the Republic of China, was already planning to unveil its virtual asset service provider (VASP) guidelines by the end of the month. The Taiwan Financial Supervisory Commission (FSC) is set to oversee virtual currencies, establish regulatory principles to combat money laundering, and ensure compliance among crypto exchanges and firms.

Despite the cryptocurrency trading and mining ban in mainland China, Taiwan is actively developing regulatory measures to strengthen its oversight of the crypto sector, with a particular focus on key aspects to bolster its regulatory framework.

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Regulator’s Perspectives

The public hearing underscored the urgent need for practical guiding principles, broader regulations, government-backed industrial development policies, the establishment of a Financial Technology Bureau, and progress toward specialized laws within Taiwan’s evolving cryptocurrency landscape.

Meanwhile, Huang Xihe from the Financial Supervisory Commission highlighted the imminent establishment of the Virtual Currency Business Association. Additionally, in his opening statement, Huang Xihe also focused on the controversial elements of the current draft concerning autonomous management and challenges in providing insurance coverage for the crypto sector.

Talking about the industry perspective, Chen Minghui, COO of Maicoin, called for special laws and a hierarchical regulatory approach, noting potential operational challenges, while He Xuanrong from Binance emphasized the importance of transparent employee training and fostering cross-field collaboration.

Besides, Huang Xihe also prioritized self-regulatory regulations, leaving details to the industry association, and discussed the handling of stablecoins and advertising considerations.

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