The Taiwan Financial Supervisory Commission (FSC) will impose restrictions on operations in the jurisdiction of unregistered overseas cryptocurrency exchanges, local media reported.
The Office has developed 10 guidelines for the operation of virtual asset service providers (VASPs).
FSC will publish the document before the end of the month, then industry associations and organizations will formulate self-regulation norms. It is assumed that in the future they will be adjusted and improved based on local experience and international practices.
Among the requirements for VASP, the Commission indicated the need to:
- proper disclosure of information on issued virtual assets;
- development of mechanisms for checking listing and removal from it;
- separate storage of corporate and client funds;
- increase the transparency of transactions and ensure fair market transactions;
- implementation of customer protection rules;
- implementing security systems to manage hot and cold wallets.
FSC also mentioned internal controls and anti-money laundering requirements in the document.
One of the points proposed by the Commission was to prohibit foreign cryptocurrency platforms from doing business in Taiwan without proper registration in accordance with the Money Laundering Law. So far, this normative act is the only regulatory document for the industry.
Recall that in August, the media learned about Binance’s intention to receive approval from the FSC to work on the island.
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