Taiwan Implements Stricter Regulations, Bans Unregistered Foreign Crypto Exchanges from Operating

cryptonews.com:

Today, on September 26, Taiwan's financial regulator, the Financial Supervisory Commission (FSC), unveiled new guidelines for Virtual Asset Service Providers (VASPs) aimed at enhancing the protection of cryptocurrency users in the country.

In March, the FSC confirmed its position to closely regulate the cryptocurrency exchange sector to safeguard users within the state. Since then, it had worked to enforce its anti-money laundering regulations on all crypto exchanges operating in Taiwan.

However, the newly released guidelines specify that cryptocurrency exchanges operating under its jurisdiction must ensure the separation and protection of company treasury assets from customer assets. They also establish a new review standard for the listing and delisting of digital assets while enhancing information disclosure.

These guidelines primarily emphasize transparency, secure asset custody practices, and strengthening internal controls and management within cryptocurrency firms.

Moreover, foreign cryptocurrency firms seeking to operate in Taiwan or serve Taiwanese customers must always register with the regulator and demonstrate their adherence to anti-money laundering regulations. 

These regulations were initially introduced by the FSC in July 2021, making it mandatory for VASPs to comply with anti-money laundering rules and regulations. Obtaining the necessary approvals from the regulator is a prerequisite before commencing operations in Taiwan or targeting its citizens.

The Financial Supervisory Commission (FSC) stated that: 

“Overseas virtual asset platform operators are not allowed to provide business within the territory of the country [...] unless they have been registered in accordance with the law.”

The Financial Supervisory