- Taiwan announces a description of the crypto sector in the new regulations released.
- The decision arises from the need to regulate the growing crypto sector in its country.
The Taiwan government has finally released a clear definition of what crypto services within the country. Before this, no regulations governed the sector. However, crypto businesses had to stay at par with the Money Laundering Control Act and the Taiwan securities laws.
According to the Financial Supervision Commission (FSC), some of the currencies in the past were securities. This is under the Howey test. The coins, including Bitcoin, were under the Securities Exchange Act, following these laws in their issuance.
The Taiwan Ministry of Economic Affairs (MOEA) took the initiative to hold cabinet meetings to eliminate the ambiguity of the sector. During a meeting on November 15, the body decided on FSC to overlook matters involving the crypto businesses within the country.
Furthermore, it takes the responsibility of providing the laws that should govern the crypto industry. At the same time, they ensured they didn’t suffocate its progress. Also, it termed such services under “virtual currency platforms and trading businesses.”
Taiwan lawmakers pressure this step
The Taiwan government received massive pressure from MPs who demanded a hurried description of the crypto sector. It might be an understandable fret as the global pandemic proved a boost to the sector’s rise. Not only did it provide moneyless avenues to payments, but it also provided a hedge against a failing global economic system.
While some of the lawmakers demanded more stringent laws against the currencies, the government opposes this idea. Its next steps suggested that the crypto sector could be a significant driver of its economic sector.
Filecoin Foundation’s director Clara Tsao openly spoke about her thoughts on Taiwan taking this road. She did this during a US-Taiwan crypto forum on YouTube on November 13. She explained that Taiwan should take this period to improve crypto businesses. She further added that it’s essential to create better opportunities arising from the growing space.
Crypto regulation is nigh
Forbes describes current times within the crypto sector as a period where regulations are inevitable. Most would prefer the opposite. However, there is continued crypto’s growth and involvement in different exchanges globally. The factor makes the development a step towards securing a future for digital assets in the financial industry.
Countries like China have extinguished the flames of digital currencies in their jurisdiction. However, others like the United States are at a global front for crypto regulation. Recently, the Biden government allowed Bitcoin ETF futures, a decision that will eventually open doors for ETFs as a whole.
The report still maintains that governments should be careful in how they decide to go about the same. In its opinion, taking a slower and surer approach is better than hurrying into the endeavour.
Additionally, it stands with the belief that involving influential market participants in the process will create more solid and practical decisions.
It further points out that the crypto sector is one of its kind, especially with the decentralized finance boom. So far, this might be the most challenging portion of the crypto industry to find straightforward designations.
Therefore, Taiwan’s approach to the matter is a positive harbinger of what other countries might emulate to improve cryptocurrencies and blockchain.