September 22, 2023

Taiwan Financial Regulator Establishes Digital Asset Department

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Taiwan Financial Regulator Establishes Digital Asset Department

The Taiwan Legislative Assembly has passed legislative amendments that will allow the Taiwan Financial Services Commission (FSC) to form a new department to deal with digital assets.

The department will be created in addition to the existing four divisions overseeing insurance, securities and futures, banking and audit companies.

The agency has already announced that the modifiedthe regulatory framework implies new rules for cryptocurrency firms, namely: separate storage of client funds and company assets. The creation of a new FSC department aims to ensure the protection of users investing in crypto assets, as well as to prevent money laundering through cryptocurrencies.

The Virtual Asset Agency operating within the FSC will also be able to conduct comprehensive research on crypto assets and discuss their development without disrupting the stability of Taiwan's financial market.

Recall that in 2021, the government of Taiwan tightened regulation of the industry, classifying token-shares as securities, and cryptocurrency companies as traditional finance.