Lawmakers in Taiwan are reportedly aiming to present a first draft of a special law regulating offshore crypto exchanges by the end of November 2023. Yung-Chang Chiang, an official in the Legislative Yuan of Taiwan, emphasized the necessity of a special law for regulating crypto-related businesses. Lawmakers are concerned about activity in offshore markets and aim to prevent "regulatory arbitrage." The move follows guidelines released by Taiwan’s Financial Supervisory Commission to enhance cryptocurrency investor protections.
Taiwanese Lawmakers Aim to Present a draft law for Offshore Crypto Exchanges by November
Lawmakers in Taiwan are reportedly aiming to present a first draft of a special law regulating offshore crypto exchanges by the end of November 2023. Yung-Chang Chiang, an official in the Legislative Yuan of Taiwan, emphasized the necessity of a special law for regulating crypto-related businesses. Lawmakers are concerned about activity in offshore markets and aim to prevent "regulatory arbitrage." The move follows guidelines released by Taiwan’s Financial Supervisory Commission to enhance cryptocurrency investor protections.
On Oct. 6, Yung-Chang Chiang held a public hearing in the Taiwanese parliament that included digital asset service providers, academics, and others in the industry to discuss the draft proposal. The draft law is expected to be presented to parliament by the end of November or sooner.
This initiative comes as lawmakers in Taiwan express growing concerns over activity in offshore crypto markets and seek to avoid "regulatory arbitrage." Yung-Chang Chiang, an official in the Legislative Yuan of Taiwan, stated that regulating crypto assets through a special law is "necessary" as they differ from traditional financial products.
On Sept. 26, Taiwan’s Financial Supervisory Commission released guidelines aimed at improving cryptocurrency investor protections. The guidelines cover various aspects of the industry, including separating assets in exchanges' treasuries from those of customers, mechanisms for reviewing the listing and delisting of digital assets, and regulations on foreign virtual asset service providers.
On the same day, major cryptocurrency exchanges operating in Taiwan formed an association to advance industry interests.
(SAVANNAH FORTIS, COINTELEGRAPH, 2023)