The Financial Supervisory Commission (FSC) in Taiwan has introduced new measures to protect crypto investors. These standards, released on 26 September, apply to virtual asset service providers (VASPs) operating in Taiwan.
The guidelines require VASPs to separately hold their own assets from those of customers as well as to detail listing and delisting procedures for virtual assets. Foreign VASPs need to get permission from the regulator to operate in Taiwan.
The FSC promotes self-regulation within the cryptocurrency space wherein associations of VASP will develop self-regulative standards in line with these guidelines.
Meanwhile, domestic crypto exchanges based in Taiwan, including Maicoin and BitstreetX, have banded together under the Taiwan VASP Association to collaborate with regulators.
Global major cryptocurrency exchanges, including Binance, Kraken, and ByBit, provide services to customers in Taiwan where the exchanges are now seeking registration under Taiwanese law.
These new measures by the FSC in Taiwan signal a proactive approach to regulating the cryptocurrency industry and enhancing investor protection.