Taiwan took its initial steps in introducing a crypto bill in the country, as the virtual asset management bill saw its first reading.
Taiwan introduced a new crypto law to its parliament, the Legislative Yuan, recently. With an aim to regulate digital assets and the crypto industry, it is termed the Virtual Asset Management Bill. Legislators in Taiwan have earlier voiced support for a crypto law, while reports of the same floated earlier this month.
The new law for crypto regulations has a few rules for asset providers to follow. It requires such firms not to merge customer funds with company reserves. Meanwhile, local trade association membership and other internal and audit controls also feature in the bill. Asset providers without licenses would also have to pay, amounting to millions of Taiwanese dollars. But they would get time upto six months for the licenses after the bill becomes law.
The rules within the bill are regular and do not seem to be stringent. They include the usual anti-money laundering and know-your-customer provisions. On the other hand, it did not specify rules for stablecoin ratios. Other countries have specified stablecoins to be backed in a 1:1 ratio with reserve funds. The new crypto law would also not limit crypto trading to only professional investors.
Industry insiders had earlier praised the country’s plans to introduce crypto regulations. With uncertainty for rules prominent in the crypto industry, such clear laws benefit crypto firms.
In the recent past, Taiwan has made several decisions for the digital asset industry. It drafted industry guidelines in September 2023 for all firms to follow. Meanwhile, crypto firms have also formed a trade association named the Taiwan Virtual Asset Platform and Transaction Business Association. It was created to work in tandem with the government and work for the crypto space.