Taiwan financial regulator mulls special crypto trading act | Taiwan News

TAIPEI (Taiwan News) ­— Government agencies are debating whether to stipulate a special act to regulate crypto trading.

Talks were sparked after the fallout of FTX sparked regulatory concerns.

“We must determine the classification of digital assets and their legal characteristics before going forward with any regulations,” said Financial Supervisory Committee (FSC) Chairman Huang Tien-mu (黃天牧) at a Lunar New Year Press Conference, as per UDN.

Two possible directions forward were mentioned at the press conference, according to CNA. Firstly, FSC is looking to step up crypto supervision through banks. The know-your-customer (KYC) process that banks go through to conduct transactions would “strengthen supervision”, Huang said.

“Self-regulatory organizations such as crypto unions are another area to work on, as they could be the key to keeping crypto businesses in line,” said Huang.

Practical measures could include the segregation of assets between client and trading platform, supervision of fair trading activities, and protection of data security — all aimed at protecting the consumer’s interests.

Currently, the only law in Taiwan regulating cryptocurrency is the Money Laundering Control Act (MLCA), which requires crypto trading platforms in Taiwan to report transactions exceeding NT$500,000.

“Taiwan is not a lagger in crypto controls. Other governments also work along the lines of anti-money laundering in efforts to regulate cryptocurrencies,” Huang said.