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Taiwan’s Financial Supervisory Commission (FSC) has designed regulations that protect the crypto industry from financial fraud and prevent money laundering. These guidelines will protect customers and empower them to report suspicious activities.
After the European regulatory authority approved the Market in Crypto Assets (MiCA) Act, it pressed the smaller nations to legitimize cryptocurrencies. Taiwan’s Financial Supervisory Commission (FSC) has also prepared crypto regulations influenced by the EU MiCA bill. This draft contains 13 principles to combat money laundering.
According to the new regulations, crypto asset providers will be allowed to issue tokens, but they must disclose whitepapers for virtual assets. However, the service providers cannot register stablecoins for trading under any condition. All the crypto service providers must be registered with authorities, without doing so, they can not advertise their services in the country. The FSC will take serious action against all those crypto agencies involved in illicit activities, such as unofficial transactions and noncompliance with AML regulations. Taiwan’s government will sentence the offenders up to seven years in prison.
Although the MiCA bill will take a few years before coming into effect, its approval has encouraged several nations to recognize the existence of the digital asset market. Following in the EU’s steps, the United Kingdom approved the Financial Services and Markets Bill (FSMB) in June. Due to the acceptance of cryptocurrencies in smaller nations like Taiwan, which has less than a million users, digital assets are now accessible to much more investment in the upcoming years.
Minister Representative, John Deng, said “We encourage businesses to continue to invest in Taiwan, hire more employees, and strive to meet internationally recognized standards to help increase Taiwan’s competitiveness. Many new opportunities are coming, so it’s best to be ready.”
TAIWAN’S SECURITY WATCHDOG IS SET TO REGULATE LOCAL CRYPTO INDUSTRY TO PREVENT MONEY LAUNDERING