The post Taiwan advances crypto regulation with two drafts of “Virtual Asset Service Act” appeared on BitcoinEthereumNews.com.

Taiwan is on the fast track to regulating crypto by introducing mandatory licenses for every firm trading digital assets. The Financial Supervisory Commission (FSC) and a member of the Legislative Yuan have drafted separate versions of the “Virtual Asset Service Act,” which, if enacted, would change the country’s crypto framework. The FSC released its draft of the “Virtual Asset Service Act” last week, while lawmaker Huang Shan-shan published her own version on Tuesday. The country lacks clear regulations that dictate how digital assets will operate, get licenses, or protect investors from fraud.  Taiwan has come up with two crypto bills to regulate the industry Crypto firms in Taiwan have to follow anti-money laundering (AML) laws, but because there are no specific laws on handling digital assets, businesses struggle to differentiate legal from illegal trading activities, so they risk sudden legal changes or penalties.  Investors also feel unprotected without specific laws safeguarding them from fraud. If a crypto exchange platform shuts down or a project fails with its investment intact, it can’t take effective legal action against it. The new act will try to resolve these challenges by ensuring businesses practice the right trading activities that protect the interests of investors.  A business that does not follow the anti-money laundering requirements or skips registration with the government faces fines of up to NT$5 million ($150,400), or its officials could be imprisoned for up to two years.  The new bill will make these laws stricter and ensure crypto firms provide high-quality services to all.   Strict licensing may force small crypto firms to exit the market Crypto lawyer and secretary general of the Taiwan Fintech Association, Kevin Cheng, believes these new regulations will improve the quality of crypto firms’ services.  He also says that smaller council factories, with NT$300 million to 500 million in…

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Filed under: News - @ April 1, 2025 4:28 pm