Taiwan Cryptocurrency Companies Join Association to Develop Self-Regulatory Standards

A new era of self-regulation is dawning in Taiwan’s digital asset industry as a group of 24 cryptocurrency companies have come together to form the Taiwan Virtual Asset Service Provider (VASP) Association. This move comes in response to the growing need for standardized regulations in the cryptocurrency space to combat fraud and criminal activities.

The association, chaired by BitoPro founder and CEO Titan Cheng, and vice-chaired by XREX chief revenue officer Winston Hsiao, aims to work closely with the government, the Ministry of Justice, and law enforcement agencies to establish rigorous and fair regulations that will foster the growth of the blockchain finance industry globally.

One of the key objectives of the association is to develop international transfer rules that meet Taiwan’s specific needs, including the implementation of the Travel Rule standards, networks, and alliances. This will involve creating currency flow scanning and tracking technology that aligns with Taiwan’s money laundering and fraud patterns.

The formation of the VASP association comes on the heels of proposed amendments to Taiwan’s Anti-Money Laundering (AML) regulations for virtual asset service providers, which could see non-compliant entities facing up to two years in prison or fines up to $1.5 million. Additionally, Taiwan’s Financial Supervisory Commission (FSC) has announced plans to introduce new digital asset regulations in September.

Hsiho Huang, an FSC director present at the Virtual Asset Service Provider Association announcement, emphasized the importance of the association in promoting compliance, standardization, and healthy development of the industry. The goal is to ensure the safety, transparency, and stability of the industry while enhancing consumer rights protection.

The establishment of the Taiwan VASP Association marks a significant step towards creating a more secure and regulated environment for the digital asset industry in Taiwan. With the support of key industry players and government agencies, the association is poised to play a crucial role in shaping the future of cryptocurrency regulation in the country.