David – Cryptocurrency Enthusiast
In line with the latest cryptocurrency news, on Oct. 25, Taiwan took a proactive step towards crypto portfolio management with the introduction of the Virtual Asset Management Bill in its Legislative Yuan. Designed to ensure a secure cryptocurrency environment, the bill promotes “better protection” for customers and aims to “properly supervise” the growing industry.
While the document contains standard regulations for virtual asset service providers (VASPs), such as segregating customer funds from operational funds and advocating for a structured internal control system, it doesn't specifically mandate stablecoin issuers to maintain a 1:1 reserve ratio. Additionally, guidelines related to marketing and advertising are to be outlined by the appointed authority.
As part of this legal cryptocurrency framework, VASPs operating without proper licenses could face penalties ranging from 2 million Taiwanese dollars (approximately $60,000) to 20 million TWD ($600,000). Current companies in the Taiwan crypto space are granted a six-month grace period to secure licensing once the bill is enacted.
Highlighting the region's drive for cryptocurrency investment security, the Financial Supervisory Commission (FSC) had previously outlined rules in September 2023, emphasizing that foreign VASPs must secure necessary permissions to operate in Taiwan.