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In a move towards self-regulation ahead of anticipated government action, 24 leading cryptocurrency companies in Taiwan have joined forces to establish the Taiwan Virtual Asset Service Provider (VASP) Association.
While Taiwan already requires cryptocurrency service providers to comply with Anti-Money Laundering (AML) laws since the Financial Supervisory Commission (FSC) introduced such rules in July 2021, the broader crypto industry remains largely unregulated. However, the landscape is expected to shift significantly in the coming months.
Last month, the Ministry of Justice proposed amendments to the existing AML laws. These amendments would require both domestic and overseas crypto firms seeking to operate in Taiwan to register for AML compliance. Failure to do so could result in imprisonment for up to two years. Additionally, the FSC plans to unveil a comprehensive framework for digital assets in September.
We celebrate this momentous day with all virtual asset service providers in #Taiwan as an official industry association is formed.
— XREX Inc. (@xrexinc) June 13, 2024
This marks an important milestone in an ongoing process towards a consultative and unique regulatory model for the #VASP industry in Taiwan. (1/4) pic.twitter.com/thzW3htCy2
The VASP Association, led by BitoPro founder Titan Cheng as chair and XREX chief revenue officer Winston Hsiao as vice chair, will play a crucial role in shaping the future of Taiwan's crypto industry. The association is committed to:
- Developing self-regulatory standards: The VASP Association will establish best practices for VASPs to ensure consumer protection, combat financial crime, and foster a stable and transparent digital asset environment.
- Collaboration with regulators: The association plans to work closely with the Taiwanese government, including the Ministry of Justice and the FSC, to ensure compliance with upcoming regulations.
- Promoting fair and effective regulations: The VASP Association advocates for regulations that encourage innovation and responsible growth within the blockchain finance industry.
"The formation of the VASP Association is a significant step forward for Taiwan's crypto industry," said industry analyst Michael Chen told Blockhead. "By taking a proactive approach to self-regulation, VASPs are demonstrating their commitment to building a secure and trustworthy ecosystem for digital assets."
The association's efforts are expected to complement the government's upcoming regulatory measures. This collaborative approach could position Taiwan as a leader in fostering a responsible and innovative digital asset market in Asia.
