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Taiwan has broadcasted the plans to modify its crypto industry with FSC or the newly established Ministry of Digital Affairs (MODA).
Taiwan’s Crypto Legislation:
Taiwan would like to adjust cryptocurrencies with the help of special legislation, and to this effect, the Financial Supervisory Commission (FSC) would supervise this expanding industry.
Huang Tien-mu, the Chairman of the FSC, confirmed this during a Parliament hearing that analyzed global banking stability.
The participants in Taiwan’s crypto industry were the ones who welcomed the news.
Currently, the FSC displays no interest in regulating non-fungible tokens (NFTs), and the local Taiwan media quoted Huang Tien-mu, saying that since NFTs are still emerging as an asset class, it is too early to regulate them.
The Co-founder and CEO of XREX, Wayne Huang, was of the belief that the industry would only grow under acceptable regulations.
The novel rules require licensed crypto trading platforms by appropriate regulators. Meanwhile, consultations have been launched to propose how best to regulate virtual asset trading platforms.
The initial law framework is ideally expected by June, with the first draft for the latter part of this year.
The Central bank of Taiwan and the FSC are 2 primary financial regulators in Taiwan. The central bank is in-charge of setting up the nation’s monetary policy, and oversees foreign exchange rules.
On the other hand, the FSC has widespread authority over everything from banking regulation, securities, and Futures to Anti-money laundering (AML).
Certain Taiwanese lawmakers wanted the newly-established Ministry of Digital Affairs (MODA) to be the chief crypto regulator since it is the latest digital asset technology. Yet, others said the MODA is comparatively recent and inexperienced when compared to the FSC.
FTX Crash Shaping Taiwan’s Crypto Landscape
Despite China’s ban on crypto-related activities, Hong Kong wishes to become a crypto hub. Taiwan, which has previously taken a hands-off approach to crypto regulation, is in fact, following Hong Kong’s lead.
The FTX crash of the previous year could have made Regulators speed the process of creation of applicable laws.
Following the bankruptcy of the Sam Bankman-Fried-led exchange, clients in Taiwan were among the most impacted, with a detailed communication estimating that they lost approximately $20 billion.
The FTX collapse (registered a novel low in 2022) saw crypto assets tank. Bitcoin dropped below $20,000 in mid-November.
Crypto firms in Taiwan remain optimistic in the sense that the Government body would learn from Hong Kong’s regulatory experience. Steps to create a favorable regulatory environment for spurring innovation in crypto and blockchain is the need of the hour.
Despite Hong Kong’s wild crypto ambitions, the city could still find competition with other hubs like Singapore and Dubai.
In other news, Hong Kong police and Binance team up to fight the Crypto crime. Any technology that crops up could be utilized for the worst- and manipulated for selfish reasons.
- Published By Team Hongkong Journalist