Taiwan’s Financial Supervisory Commission (FSC) has released new guidelines for virtual asset service providers (VASPs) with the aim of streamlining the crypto exchange space in the country. The guidelines were announced on Tuesday, September 26, 2023, and shared by Wu Blockchain via Twitter.
The FSC outlines the requirements for VASPs, which include integrating and making public mechanisms for listing and delisting assets, segregating customer funds from exchange assets, having a security management system in place, and providing information disclosures on internal audits and other procedures.
Furthermore, any offshore crypto exchange seeking to provide products and services to Taiwan customers must register with the FSC before doing so. Solicitation of business within the territory of Taiwan or from Taiwan citizens is prohibited unless the company has been registered under the Company Law and has submitted to the FSC.
In addition, the FSC encourages VASPs to form or join self-regulatory standards organisations to ensure self-discipline within the industry and enhance customer protection.
The new guidelines provide an important step forward in the regulation of crypto exchanges in Taiwan.
