Taiwan greenlights formation of crypto industry association

Taiwan’s Ministry of the Interior has granted approval for the establishment of an industry association by the local cryptocurrency sector, marking a significant step towards regulating the industry in the East Asian country.???

The move comes as part of the government’s efforts to bring oversight and structure to the rapidly evolving cryptocurrency landscape. The local cryptocurrency industry working group confirmed the approval in a notice issued on Friday. The working group was?established?last year to lay the groundwork for the formation of an industry association.??

Embracing the global crypto field??

In a press release in September, Cai Yuling, chairman of the Taiwan Fintech Association, who serves as the general consultant of the preparatory group of the Taiwan VASP Association, said the most important thing for the association is to be an industry representative so that it can build consensus and negotiate externally.???

“Not only can we establish a complete cryptocurrency industry ecosystem in Taiwan, but we can also allow Taiwanese industry players to enter the world stage and occupy a place in the global cryptocurrency field,” Yuling said.??

Association to be established by June

With the go signal from the government, the working group is now tasked with finalising all necessary preparations to formally establish the crypto industry association by the end of June, in compliance with regulatory requirements.??

Comprising 22 prominent crypto firms, including leading exchanges such as MaiCoin and BitoPro, the working group has been actively engaged in steering the sector towards self-regulation.???

Milestone for Taiwan’s crypto??

The establishment of the industry association represents a significant milestone for Taiwan’s cryptocurrency sector, which has thus far operated within a largely unregulated framework. While existing regulations mandate compliance with anti-money laundering laws, introduced by the Financial Supervisory Commission in July 2021, comprehensive oversight mechanisms are yet to be implemented.??

Championing customer protection??

In September 2023, the Financial Supervisory Commission released guidelines emphasizing customer protection for crypto firms, underscoring the need for industry-wide standards. By forming an industry association, crypto firms aim to develop self-supervisory rules aligned with these guidelines, fostering a safer and more transparent operating environment.??