Taiwan will pass laws to regulate digital assets
Taiwan will adopt special legislation that will give the local Financial Supervisory Commission (FSC) a mandate to regulate cryptocurrencies. The information was confirmed by the head of the agency Huang Tenmu, writes Bloomberg.
Speaking to CoinDesk, XREX platform co-founder and CEO Wayne Huang welcomed the imminent arrival of regulatory clarity. He said industry players can join forces to help the FSC develop a set of rules.
Principles for the document are expected by June, with a draft bill in the coming months.
The impetus for the initiative may have come from the FTX collapse - locals were, in relative terms, the largest users of the platform.
The island had previously taken a neutral approach to digital assets, requiring crypto exchanges only to comply with AML rules.
According to Juan, the FSC will focus on regulating virtual assets related to payments and trading, while the cabinet will hand over the rest to other government agencies. In particular, stabelcoins could be the responsibility of the central bank.
The commission would not regulate NFTs because of their "immature nature as an asset class," according to the CEO of XREX.
"Because of their extensibility and componentizability, non-interchangeable tokens can represent a wide range of things, from commercial products to commodities to securities," Wayne explained.
As a reminder, in July 2022, the FSC sent a letter to the banking association demanding a ban on the use of credit cards to pay for digital assets.
