Taiwan proposes new digital asset regulations to safeguard investors


  • Taiwan plans new rules for digital assets to protect investors and prevent fraud.
  • The proposed regulations aim to make digital asset markets safer and more secure.
  • Authorities warn against investing in foreign crypto products without proper scrutiny.

Taiwan’s Financial Supervisory Commission (FSC) is set to introduce a new draft bill to bolster digital asset regulations, ensuring investor safety in the burgeoning market. The move comes as part of Taiwan’s efforts to navigate the evolving landscape of digital currencies and their integration into traditional financial systems.

Strengthening regulatory framework

In a recent announcement, FSC Chairman Huang Tien-mu highlighted the necessity of more stringent regulations to mitigate risks associated with digital assets. The proposed bill seeks to establish robust guardrails for digital asset markets, addressing fraud and investor protection concerns.

Huang’s address also warned potential bad actors, emphasizing strict penalties for merchants engaging in fraudulent activities within the digital asset space. The FSC aims to curb deceptive practices and uphold market integrity through rigorous enforcement measures.

Acknowledging the increasing interconnection between digital assets and traditional financial systems, the FSC underscores the importance of safeguarding the stability of legacy financial infrastructure. The forthcoming regulations aim to shield the traditional financial system from the potential risks of digital assets.

Proactive measures by Taiwanese legislators

Taiwanese legislators have proactively addressed the regulatory challenges posed by digital assets. The introduction of the Virtual Asset Management Bill underscores the government’s commitment to enhancing customer protection and supervising the industry effectively. The proposed bill also outlines penalties for unlicensed virtual asset service providers, further bolstering regulatory oversight.

While Taiwan explores opportunities in the digital asset space, authorities remain cautious about the proliferation of foreign crypto-based products. Tien-mu’s remarks caution market participants against investing in such products without proper regulatory scrutiny, highlighting the FSC’s commitment to maintaining a secure and transparent market environment.

Collaborative efforts between exchanges and regulators

In a bid to foster industry collaboration and regulatory compliance, Taiwan’s major cryptocurrency exchanges formed a self-regulatory association. This initiative demonstrates a concerted effort by both industry players and regulators to promote responsible practices and ensure adherence to regulatory standards.

Taiwan’s regulatory landscape has witnessed significant milestones in recent years. Issuing the country’s first security token offering license to Cathay Securities marks a pivotal step towards integrating digital assets into traditional financial markets. This landmark development enables firms to issue tokenized assets, paving the way for innovative financial instruments in Taiwan’s market.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Benson Mawira

Benson is a blockchain reporter who has delved into industry news, on-chain analysis, non-fungible tokens (NFTs), Artificial Intelligence (AI), etc.His area of expertise is the cryptocurrency markets, fundamental and technical analysis.With his insightful coverage of everything in Financial Technologies, Benson has garnered a global readership.

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