Taiwan to Impose Restrictions on Foreign Bitcoin Exchanges

Taiwan’s Financial Supervisory Commission (FSC) will impose restrictions on operations in the jurisdiction for foreign cryptocurrency exchanges that have not registered, local media report.

The agency has developed 10 principles guiding the operation of virtual asset service providers (VASPs).

The FSC will publish the document by the end of the month, after which industry associations and organisations will formulate self-regulatory standards. It is expected that they will be adjusted and refined over time based on local experience and international practice.

The Commission outlined the following requirements for VASPs:

• adequate disclosure of information on issued virtual assets;
• development of mechanisms to verify listings and to delist them;
• segregated custody of corporate and client funds;
• increasing transparency of transactions and ensuring fair market trading;
• implementation of customer protection rules;
• the implementation of security systems to manage hot and cold wallets.

The FSC also mentioned in the document internal control mechanisms and anti-money laundering requirements.

One of the points proposed by the Commission was to prohibit foreign cryptocurrency platforms from operating in Taiwan without proper registration in accordance with the Anti-Money Laundering Act. is the only regulatory document for the industry.

Earlier in August, media reported that Binance to obtain approval from the FSC to operate on the island.