Offshore Crypto Exchanges Must Comply or Exit

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By BitcoinWiki News

Key Takeaways:

– Taiwan’s Financial Supervisory Commission (FSC) is drafting ten guiding principles for virtual asset service providers (VASPs)
– The guidelines will focus on strengthening information disclosure, establishing review standards for virtual asset listing and delisting, and ensuring asset separation and custody
– FSC plans to ban unregistered overseas crypto firms from soliciting business in Taiwan
– Foreign VASPs will be required to register and comply with anti-money laundering regulations
– Failure to register will result in these firms being barred from soliciting business in Taiwan
– FSC will be the chief regulator for virtual asset service providers in Taiwan
– FSC won’t be regulating non-fungible tokens (NFTs)
– Taiwan’s Ministry of Economic Affairs proposed a new business category to promote self-regulation in the cryptocurrency industry
– Binance, the largest cryptocurrency exchange, is seeking registration in Taiwan to comply with anti-money laundering measures
– Taiwan Mobile, a licensed wireless service provider, is exploring partnerships and investments in local crypto platforms
– Bitcoin (BTC) is not specifically mentioned in the article


Title: Taiwan to Impose Restrictions on Offshore Crypto Exchanges

Introduction:
Taiwan’s Financial Supervisory Commission (FSC) is set to impose restrictions on offshore cryptocurrency exchanges operating within its jurisdiction unless they obtain the required registration. The FSC has drafted ten guiding principles for virtual asset services providers (VASPs) to establish self-regulatory rules, aimed at strengthening information disclosure, review standards for virtual asset listing and delisting, and ensuring the separation and custody of assets.

Ban on Unregistered Overseas Firms:
The FSC plans to strictly prohibit illegal business solicitation by foreign crypto firms operating in Taiwan. Foreign VASPs will be required to register according to company law and declare compliance with anti-money laundering regulations. Failure to do so will result in these firms being barred from soliciting business within Taiwan or from domestic residents.

Financial Supervisory Commission as the Chief Regulator:
Taiwan recently appointed the Financial Supervisory Commission as the chief regulator for virtual-asset service providers, with the aim of introducing detailed guidelines by the end of September. The FSC will oversee banking regulation, securities, futures, and anti-money laundering efforts, with the Central Bank of the Republic of China regulating monetary policy and foreign exchange regulations.

Exemption for Non-Fungible Tokens (NFTs):
The FSC will not be regulating non-fungible tokens (NFTs), which are unique digital assets. These assets are excluded from the self-regulatory guidelines developed by the FSC.

Promotion of Self-Regulation:
Taiwan’s Ministry of Economic Affairs proposed the addition of a new business category in relevant regulations to promote self-regulation. This move aims to enable cryptocurrency-related companies to establish industry associations, laying the foundation for enhanced self-regulation within the sector.

Binance’s Registration in Taiwan:
World’s largest cryptocurrency exchange, Binance, is seeking registration in Taiwan to comply with anti-money laundering measures. Although currently unregulated, Binance has established a local entity called “Binance International Limited Taiwan Branch (Seychelles)”, indicating its commitment to the Taiwanese market.

Collaboration with Criminal Investigation Bureau:
Binance collaborated with Taiwan’s Criminal Investigation Bureau to assist over 200 law enforcement officers in tackling digital asset-related crime. This collaboration showcases Binance’s efforts to cooperate with local authorities and ensure compliance with regulations.

Potential Partnerships with Taiwan Mobile:
Telecommunications giant Taiwan Mobile is in talks with local crypto platforms for potential partnerships and even investment in the sector. The licensed wireless service provider is exploring collaboration opportunities with blockchain-enabled financial institutions, including Taiwan-based XREX.

Conclusion:
Taiwan’s Financial Supervisory Commission aims to regulate offshore cryptocurrency exchanges operating within its jurisdiction by implementing registration requirements. The draft guidelines emphasize information disclosure, asset management, and compliance with anti-money laundering regulations. Binance’s intention to register in Taiwan and the collaboration between Binance and Taiwanese authorities highlight the importance of compliance and cooperation in the industry. Additionally, Taiwan Mobile’s interest in partnering with crypto platforms signifies the growing acceptance and potential for collaboration between traditional industries and the cryptocurrency sector.

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