A consortium of 24 cryptocurrency companies in Taiwan has formed the Taiwan Virtual Asset Service Provider (VASP) Association to establish self-regulatory standards for the digital asset industry. BitoPro founder Titan Cheng has been appointed as chair and XREX’s Winston Hsiao as vice chair. The association aims to promote regulations that foster the global growth of blockchain finance and combat fraud within the industry by collaborating with government agencies and law enforcement.
The VASP Association plans to work with the Ministry of Justice and law enforcement agencies to develop technologies and rules that align with Taiwan’s requirements. XREX, as a member of the association, will provide technology, industry knowledge, and infrastructure to establish a joint defense platform. The association is also focused on implementing currency flow scanning and tracking technology to identify money laundering and fraud patterns. The proposed amendments to Taiwan’s Anti-Money Laundering regulations could see noncompliant entities facing imprisonment or fines.
The establishment of the VASP association follows a proposal by Taiwan’s Justice Ministry to amend AML regulations for virtual asset service providers. The Financial Supervisory Commission (FSC) of Taiwan plans to introduce new digital asset regulations in September. The association aims to enhance compliance, standardization, and healthy development of the industry, ensuring safety, transparency, stability, and consumer rights protection. FSC Director Hsiho Huang emphasizes the importance of cooperation and consensus within the industry.
Taiwan intends to impose restrictions on offshore cryptocurrency exchanges operating within its jurisdiction, requiring them to gain registration. The FSC has drafted ten guiding principles for VASPs to establish self-regulatory rules, focusing on various aspects such as information disclosure, virtual asset listing standards, and asset custody. The FSC plans to strictly prohibit illegal business solicitation by foreign crypto firms and mandate registration and compliance with anti-money laundering regulations. Failure to comply will result in these firms being barred from soliciting business within Taiwan.
The guiding principles set by the FSC are expected to be officially released by the end of the month, aiming to strengthen regulations and oversight in the digital asset industry. The association is committed to promoting compliance, standardization, and a healthy industry environment. By fostering cooperation and consensus within the industry, the association seeks to ensure the safety, transparency, and stability of the digital asset industry in Taiwan. The collaborative efforts of industry players, government agencies, and law enforcement are vital in combating fraud and criminal activities within the sector.
