Lawmakers in Taiwan are reportedly aiming to introduce the first draft of a special law by the end of November 2023, according to a new report. a report from the mass.
Yung Chang-chiang, an official with Taiwan’s Legislative Council, said in an interview that he intends to have the first draft available for reading by Parliament by the end of November or earlier, and that such a law is “essential” to regulate crypto-related companies.
This comes as lawmakers in Taiwan grow increasingly concerned about activity in overseas markets and seek to avoid “regulatory arbitrage.” Chiang says crypto assets are different from traditional financial products and need to be subject to special law.
On October 6, a public hearing was held in the Taiwanese Parliament that included digital asset service providers, academics and others in the industry, where they discussed the draft proposal.
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This follows guidelines issued on September 26 by Taiwan’s Financial Supervision Commission (FSC) that moved to improve protection for cryptocurrency investors.
The guidelines included industry-wide rules including the separation of assets in an exchange’s treasury from those of a client, along with mechanisms for reviewing the listing and delisting of digital assets.
In addition, the rules stipulate that foreign virtual asset service providers cannot provide services in Taiwan without obtaining the necessary approvals from local regulatory authorities.
On the same day, major cryptocurrency exchanges operating in Taiwan formed an association to promote the interests of the industry.
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