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Taiwan to introduce new digital currency laws in September: Report

News Feed - 2024-03-04 10:03:42

Zoltan Vardai10 hours agoTaiwan to introduce new digital currency laws in September: ReportThe new draft bill will aim to create more guardrails to protect digital asset investors.1590 Total views1 Total sharesListen to article 0:00Local NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksThe Financial Supervisory Commission (FSC) has announced that it will propose a new draft of digital asset regulations for Taiwan in September 2024.


The upcoming draft bill will aim to create more effective regulations for digital asset markets and to assure the safety of investors, said Huang Tien-mu, chairman of the FSC, according to a March 4 news report by UDN.


The speech also cautioned investors of the potential fraud risks associated with digital currencies and warned that strict administrative penalties will be imposed on merchants trying to defraud investors.


Huang’s speech emphasized the growing interconnection between digital assets and the traditional financial system, where the former endangers the latter. The committee will also develop laws to protect the stability of the legacy financial system, from the risks of digital assets.


Taiwanese legislators introduced the Virtual Asset Management Bill to the unicameral parliament on Oct. 25. The bill aims to provide “better protection” for customers and “properly supervise” the industry.


The bill also suggested a fine for unlicensed virtual asset service providers (VASPs) of between two million Taiwanese dollars (around $60,000) and 20 million TWD ($600,000).Taiwan’s Chamber of Commerce to release Bitcoin ETF study


Taiwan’s Chamber of Commerce will also release a study on Bitcoin (BTC) exchange-traded funds (ETFs) in April, according to Gao Jingping, the deputy director of the Warranty Bureau.


Tien-mu also pointed out that Taiwan is considering the acceptance of spot Bitcoin ETFs under its regulatory purview but cautioned market participants from investing in foreign crypto-based exchange-traded products.


Taiwan’s FSC prohibits foreign VASPs from providing their services in Taiwan without obtaining the necessary approvals from the regulator.


The rules were created after the country’s major cryptocurrency exchanges formed a self-regulatory association on Sept. 26, 2023. Local exchanges, including BitstreetX, Hoya Bit, Bitgin, Rybit, Xrex and Shangbito, joined forces to support the crypto industry and collaborate with regulators.


The FSC awarded the country’s first security token offering license to Cathay Securities on Nov. 9, 2023, enabling the firm to issue $930,000 worth of tokenized green bonds every six months.


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