Taiwan Advances Crypto Regulation as Draft Act Passes First Reading in Parliament
Taiwan parliament, the Legislative Yuan, has passed the first reading of a proposed crypto law that would regulate the crypto asset industry.
Taiwan has taken a significant step toward regulating the crypto sector by proposing a special crypto law, which has passed its first reading at the Legislative Yuan (Taiwan’s parliament). This proposed law, co-authored by Yung-Chang Chiang and 16 other lawmakers, would require all cryptocurrency platforms operating in Taiwan to obtain a permit.
Failure to comply could lead to regulatory orders for them to cease operations. While Taiwan’s Financial Supervisory Commission (FSC) had previously released guidelines for the crypto sector to form self-supervisory rules, these measures lacked legal enforceability.
The goal is to establish a regulatory framework that provides oversight and legal enforceability for crypto businesses, emphasizing the necessity of such a law to ensure proper regulation in the cryptocurrency sector.
This was followed when Yung-Chang Chiang, a member of the Legislative Yuan of Taiwan, expressed the intention early this month to have the first draft of this law ready for parliament’s review by the end of November 2023 or even sooner.
The new special law would grant regulatory authorities the power to impose administrative penalties on operators who violate these self-regulation rules. The law aims to address the need for legal enforceability in the sector, as previous self-regulation guidelines lacked such power.
Yung-Chang Chiang, a member of the Legislative Yuan who jointly proposed the special act, said,
“We hope that the Financial Supervisory Commission can also submit their version of a draft bill to the legislature, allowing various sectors of society to
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