• The Financial Supervisory Commission of Taiwan (FSC) will become the primary regulator of cryptocurrencies in the island country.
• FSC chairman Huang Tien-mu has announced that the regulator will assume supervisory authority over the crypto industry in Taiwan.
• Taiwanese lawmakers expect to develop and approve a relevant crypto regulatory framework by the end of March or April at the earliest.
Taiwan Watchdog FSC to Assume Authority on Crypto Regulation
The Financial Supervisory Commission of Taiwan (FSC) will become the primary regulator of cryptocurrencies in the island country, according to the head of the authority. FSC chairman Huang Tien-mu has announced that the regulator will assume supervisory authority over the crypto industry in Taiwan, with proposed regulations expected by March/April 2021.
Crypto Regulatory Framework
The official specified that the FSC is currently instructed by Taiwan’s highest administrative body —the Executive Yuan —to supervise payments and transactions in the crypto market. The upcoming crypto regulatory framework proposed by FSC is expected to include major rules and policies such as separation of customer assets from company funds and investor protection practices. It should be noted that other industry-related assets, like nonfungible tokens (NFTs), may not fall under FSC’s supervision.
Self-Regulation Principles
FSC chairman Huang also noted that initially it would pay special attention to self-regulation principles in cryptocurrency industry in Taiwan, following instructions from Executive Yuan.
Regulatory Framework Deadline
According to a report from Central News Agency, Taiwanese lawmakers expect to develop and approve a relevant crypto regulatory framework by March/April 2021 at earliest. The current preliminary plan reportedly aims to put regulation for NFTs under supervision of Ministry of Digital Affairs.
China’s Stance on Crypto Regulation
The news comes amid ongoing tensions between China and Taiwain, with Chinese government considering Taiwan as breakaway province which it vowed to place under its control. Unlike some crypto-friendly jurisdictions such as Hong Kong or Singapore, China has emerged as major anti-crypto country placing blanket ban on crypto activities this year 2021.