Taiwan Forms Self-Regulating Association to Enhance Crypto Regulation

Taiwan is making significant strides in the regulation of its crypto sector by establishing a self-regulating association aimed at overseeing the rapidly evolving digital asset space. The Taiwan Virtual Asset Service Provider Association (TVASP) was officially formed by 24 crypto firms registered with the Financial Supervisory Commission (FSC) for anti-money laundering (AML) compliance.

Led by Titan Cheng, CEO of BitoPro, and Winston Hsiao, co-founder and chief revenue officer of XREX, the TVASP Association is focused on developing clear and concise guidelines for the industry. This move aligns with Taiwan’s commitment to supporting responsible growth within the crypto sector, as stated by Hsiho Huang, director of the FSC’s securities firms division.

The association’s primary goal is to establish self-regulatory guidelines, particularly regarding the classification and grading of Virtual Asset Service Providers (VASPs). This system aims to strike a balance between industry growth, government oversight, and consumer protection.

Taiwan has already made progress in regulating crypto, with the FSC mandating AML compliance for crypto service providers since July 2021. Additionally, the Ministry of Justice proposed amendments to existing AML laws last month, requiring domestic and foreign crypto firms to register for AML before operating in Taiwan. Non-compliant firms could face imprisonment penalties of up to two years.

By forming the TVASP Association, crypto firms in Taiwan are taking proactive steps to create a responsible and well-regulated crypto ecosystem. This collaborative effort with the government aims to ensure a thriving and secure digital asset environment for all stakeholders involved.