These rules will require VASPs to make more detailed disclosures. Companies will be required to set standards for listing and de-listing virtual assets, and to ensure that their own assets and client funds are held separately. The new regulations should provide a clearer mechanism for hot and cold wallet management to organizations dealing with digital assets.
One of the main restrictions will be a strict business restriction for foreign cryptocurrency companies. If foreign VASPs fail to register under the Companies Act and declare anti-money laundering (AML) compliance to the FSC, the organizations will be prohibited from doing business in Taiwan or working with residents of the country. The FSC introduced AML in July 2021, and if companies evade the rules, their operations in the region are considered illegal.
In August, the largest cryptocurrency exchange Binance applied for a license that will allow the company to operate in Taiwan. In June, the exchange organized an event for the Taiwan Criminal Investigation Bureau, where law enforcement officers learned about new trends in cryptocurrency crimes.