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- Taiwan formed the Virtual Asset Service Provider Association with 24 crypto firms for regulatory oversight.
- BitoPro’s Titan Cheng chairs the association; XREX’s Winston Hsiao serves as vice chair.
- Taiwan aims to standardize VASP classification and management to align with global expectations.
The formation of the Taiwan Virtual Asset Service Provider Association, which was entirely driven by government directives, represents a significant development in Taiwan’s cryptocurrency landscape regulation. This initiative demonstrates the country’s diligent approach to regulating its rapidly growing cryptocurrency market.
Taiwan forms crypto industry association as major step toward self-regulation https://t.co/gdaMof0uyz
— The Block (@TheBlock__) June 13, 2024
The newly established association is being developed by 24 prominent cryptocurrency firms that are already registered with the Financial Supervisory Commission.
Titan Cheng, Founder and CEO of BitoPro, a major Taiwanese exchange, is to assume the position of chairman for the association. Winston Hsiao, the co-founder and chief revenue officer of XREX, has been appointed vice chair of the association.
The establishment of this industry association is a significant step forward for Taiwan’s efforts to improve regulation of cryptocurrency exchanges. The government has mandated the association to create and administer self-regulatory frameworks.
The government’s support for this initiative was highlighted during the association’s inaugural meeting by Hsiho Huang, director of the Financial Supervisory Commission’s securities firms division.
One of the association’s main short-term goals is to develop comprehensive self-regulation guidelines. The purpose of these guidelines is to protect consumer rights by standardizing the management and classification of Virtual Asset Service Providers (VASPs) and guaranteeing industry alignment with governmental and market expectations.
In an effort to strengthen current anti-money laundering (AML) regulations, the Ministry of Justice has proposed new legislation that would require foreign and domestic cryptocurrency companies interested in entering Taiwan’s market to register for compliance or risk fines of up to two years in jail.
Taiwan is gaining international attention for its role in influencing the future of digital finance in the region as it leads the way in formalizing its cryptocurrency sector through coordinated regulatory efforts.
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