So-called offshore crypto exchanges, or foreign exchanges, are causing concern among some governments. Taiwan is about to take a major step against these concerns in the crypto market.
During a public hearing on October 6 in Taiwan’s parliament, MP Yung-Chang Chiang announced a bill On. He wants to present this proposal to the Taiwan parliament at the end of November.
Sanctions against crypto exchanges not yet possible
The purpose of this proposal is to expand the authority for regulatory authorities to impose administrative sanctions in Taiwan.
Currently, regulators in Taiwan cannot impose fines on foreign exchanges that do not comply with national regulations. The law must change this.
“In this case, regulatory authorities under the authority of this special law may impose administrative sanctions on operators who violate these self-regulation rules. Without such a special law, regulators would not have the ability to impose sanctions.”
According to Chiang. Since July 2021, Taiwan has required crypto companies to comply with national anti-money laundering laws. With the new legislation, all crypto exchanges active in the country must apply for a license, just like in the Netherlands. The new legislation should provide a solution in the regulation of the fast-growing digital assets industry.
Crypto legislation in Taiwan on hold
The Taiwanese Financial Supervisory Commission recently issued guidelines regarding self-regulation of crypto exchanges, but these are not binding.
However, Chiang acknowledges that it is unlikely that these regulations will be adopted immediately. He said other important priorities, such as the budget revision and the upcoming elections in Taiwan, will take priority. He suggests the legislation may not come into effect until after mid-2024.
Another striking story from Taiwan was recently featured on Crypto Insiders. The country has even had a unique system of encouraging tax compliance through a lottery since 1950. To participate in this remarkable lottery, a single transaction on a Taiwanese crypto exchange is enough. A lucky bitcoin (BTC) trader hit the jackpot.
2023-10-07 16:01:11
#Taiwan #finally #step #crypto #legislation #consequences
