Global: Taiwan’s FSC Plans Cryptocurrency Regulatory Framework by September

Taiwan is set to introduce a legislative framework to regulate cryptocurrencies by September of this year, targeting both local and international entities involved in the crypto space.

The move comes as a response to the growing concerns surrounding fraudulent activities in the cryptocurrency sector. Huang Tianzhu, Chairman of the Financial Supervisory Commission (FSC), emphasized the need for stringent measures. He indicated that crypto exchanges and foreign currency merchants would face strict administrative penalties to curb illicit activities.

Tianzhu highlighted the detachment of virtual assets from the real economy and expressed concerns about the potential rise in investment disputes and risks associated with unregulated overseas investments.

The FSC chairman underscored the commission’s interest in establishing connections between virtual currencies and the traditional financial system. Tianzhu emphasized the importance of additional legislative efforts to ensure stability and security in financial markets.

Gao Jingping, Deputy Director of the Securities and Futures Bureau, discussed the potential for Taiwanese investors to participate in foreign Bitcoin ETFs. He mentioned that findings from an ongoing investigation would be shared in April, potentially expanding investment opportunities and enhancing the overall market landscape.

With 10 entities currently involved in virtual currency trading in Taiwan, Tianzhu cautioned against using unauthorized international platforms to mitigate fraud risks and ensure financial security.