In September 2024, Taiwan’s Financial Supervisory Commission (FSC) intends to release a draft of a digital asset regulation. The measure intends to regulate digital asset markets and protect investors.
The FSC chairman, Huang Tien-mu, stressed the growing interconnectedness of digital assets and the traditional financial system. He warned that the former posed a threat to the latter’s stability. As a result, the committee will create regulations to shield the legacy financial system from digital asset threats.
The FSC’s address warned investors about the fraud dangers linked with digital currency. It further noted that traders who attempted to deceive investors would face heavy administrative sanctions.
Taiwanese legislators introduced the Virtual Asset Management Bill to the parliament in October 2023. The measure intends to improve customer protection and industry supervision. It also proposed penalty for unauthorized virtual asset service providers (VASPs) ranging from two million to twenty million Taiwanese dollars.
The Taiwan Chamber of Commerce will publish a study on Bitcoin ETFs in April 2024. Tien-mu added that Taiwan is considering introducing spot Bitcoin ETFs as part of its regulatory framework, but advised against investing in international cryptocurrency-based exchange-traded products.
