Lawmakers may put forward a draft of a new Taiwan crypto law that could change the regulatory landscape for the industry in the country.
A few reports have confirmed deliberations in Taiwan on a new law. If it becomes a reality, the Taiwan crypto law will be a big impetus for the blockchain space in the country. Yung-Chang Chiang, an official of Taiwan, spoke about the importance of the new law. He also said the law could debut in the parliament by November 2023 for a first reading.
Lawmakers in Taiwan have earlier recognized the growing need for regulation across industries like crypto. While China has banned crypto trading, regions like Europe and Hong Kong have great clarity for crypto regulation. Meanwhile, Chiang also stated crypto assets were different from other traditional financial products.
“In this case, under the authority of this special law, regulatory authorities can impose administrative penalties on operators who violate these self-regulation rules. Without such a special law, the regulators would lack the ability to impose penalties,” he said.
Chiang recently held a public consultation with several stakeholders, including private crypto firms, academics, and others. The Taiwan Financial Supervisory Commission had also released guidelines for crypto before this. But Chiang had claimed the lack of legal backing for such guidelines was the main issue.
The new crypto law will likely require all crypto firms to get the necessary permits for operating in Taiwan. Though the first reading for the law may happen in 2023, it may only come into force by 2024.