Taiwan Mobile, the country's second-largest telecom provider, has received a VASP license, marking its entry into the cryptocurrency market. This move is set to boost the industry with significant resources and expertise.
Taiwan Mobile, the country’s second-largest telecommunications provider, has officially entered the cryptocurrency market by obtaining a virtual asset service provider (VASP) license from Taiwan’s Financial Supervisory Commission (FSC). This landmark development allows the telecom giant to establish and operate a cryptocurrency exchange, bringing substantial resources and experience to the burgeoning industry.
Taiwan Mobile's Strategic Move
Known locally as Taiwan Big Brother, Taiwan Mobile is now the 26th company to receive a VASP license. This move has been in the works for over a year, with Bloomberg speculating that Taiwan Mobile was considering the acquisition of an existing exchange. The VASP license was granted under the name of Fusheng Digital, a company owned by Taiwan Mobile. Both entities are led by Lin Zhichen.
The VASP License and Its Requirements
To obtain the VASP license, Taiwan Mobile had to meet stringent Anti-Money Laundering (AML) requirements. With these hurdles cleared, the company becomes eligible for membership in the Taiwan Virtual Asset Service Provider Association, a self-regulatory organization established in June.
Industry Impact and Diversification
The inclusion of a major corporation like Taiwan Mobile is expected to significantly bolster the VASP association, which predominantly comprises startups. According to the United Daily News, the entry of Taiwan Mobile will inject new experience and resources into the industry. Zheng Guangtai, the association’s chairman, highlighted that the addition of companies from various sectors enriches the collective expertise of the organization.
Evolving Crypto Regulation in Taiwan
The regulatory landscape for cryptocurrencies in Taiwan has been evolving, with the FSC taking charge of crypto regulation in mid-2023. In September, the FSC introduced management guidelines for crypto businesses and banned foreign operators. The following month, Taiwanese parliament introduced a bill to support FSC guidelines with fines.
In March, the FSC announced plans to introduce a bill to tighten regulation and enhance consumer protections. Further amendments to AML laws were proposed by the Justice Ministry in May, making violations by VASPs punishable by prison terms for responsible parties.
High-Profile Collaborations and Enforcement
In a significant collaboration, Binance worked with the Justice Ministry in May to resolve a money laundering case involving $6.2 million. This operation led to nine individuals being charged with money laundering, fraud, and organized crime, underscoring the government's commitment to stringent enforcement of AML regulations.
Taiwan Mobile’s entry into the cryptocurrency market marks a pivotal moment for the industry. With its VASP license, the telecom giant is set to leverage its vast resources and expertise to drive innovation and growth in Taiwan’s digital asset space. As the regulatory framework continues to evolve, the involvement of established corporations like Taiwan Mobile could pave the way for a more robust and diversified crypto market in Taiwan.
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(DEREK ANDERSEN, COINTELEGRAPH, 2024)