In a bid to regulate the country’s crypto assets market and mitigate the risks involved, Taiwan’s Parliament has passed the first hearing of a proposed crypto bill.
Co-authored by 17 lawmakers, the crypto regulatory bill was introduced as they believe crypto assets hold distinct differences from traditional financial instruments thus warranting specially designed regulations and guidelines.
The hearing revealed that the bill will first introduce a Virtual Asset Management Ordinance bill which passed its first hearing as regulators will continue to delve deeper into other facets of the regulatory bill.
The Taiwan crypto bill aims to formally regulate the entire scope of the country’s crypto market which progresses from the Financial Supervisory Commission (FSC) guidelines surrounding crypto assets to which companies should abide by.
The proposed bill would provide greater authority over FSC’s existing rules and amend some guidelines deemed unsuitable.
Yung-Chang Chiang, Member of Taiwan Parliament, said: “We hope that the Financial Supervisory Commission can also submit their version of a draft bill to the legislature, allowing various sectors of society to further consolidate consensus during the process.”
Crypto asset firms must comply with FSC guidelines that centre on anti-money laundering laws, but the proposed bill will look to set about institutional standards that are compulsory orders for companies to follow.
Much of these standards revolve around customer security and privacy, and will also introduce an operational licence for companies to apply to offer its services in Taiwan.
Whilst the FSC is set to add its own submissions to the proposed crypto bill, no set date has been set for the second hearing to be held in Parliament.