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- 1 Taiwan is all prepared to accept cryptocurrency and officially proposed a draft crypto act for reading.
- 2 Once passed by Taiwan’s parliament, crypto platforms would be required to apply for the permit.
Cryptocurrency is emerging as a new normal in the world, expanding strong footprints in every industry, region, and sector, and Taiwan is no exception. Taiwan, a leading player in the manufacturing of computer components, found room to run in the crypto world. On October 27, the country’s legislative body officially proposed a draft crypto act for first reading. If passed, the effectiveness of the law can be observed by November 2023.
The Official Crypto Law
Taiwan has partially allowed digital assets and related services since July 2021. The country’s legislative body mandated Anti Money Laundering (AML) regulations for cryptocurrency whereas the remaining crypto industry remained unregulated. With time, Taiwan experienced a significant need for regulating the digital asset industry, to remain updated and to minimize illegitimate actions.
As a successive step, Taiwan legally proposed a draft crypto act today for readers. The proposal requests regulating the crypto assets and actions. Surprisingly, the proposal passed the first reading at the Legislative Yuan, Taiwan’s Parliament. The same is confirmed by Yung-Chang Chiang in an interview with The Block, a cryptocurrency news platform.
Yung-Chang Chiang is a member of parliament and expects the Financial Supervisory Commission to submit its version of a draft bill. “Without a special crypto law, the regulators would lack the capability to impose penalties”, stated Chiang.
In the proposed crypto law, all the crypto platforms operating in the respective country need to apply for a permit to work with the digital assets. Regulators have the power to cease the operations in case the platform fails to apply.
What’s the Need for Crypto Regulatory?
Cryptocurrency gained too much popularity in a short time with more room to run. As a double-edged sword, the digital also has some positives and negatives. With wealth and economic growth, cryptocurrency also raised concerns related to money laundering and consumer protection.
Offshore exchanges are not subjected to the same regulations as domestic exchanges and thus, actualized concerns for customers operating with digital assets. To minimize such concerns, impose penalties on illegal offerings, and uplift the fitting use of cryptocurrency, Taiwan came up with a new lawsuit. The first reading of the crypto bill is expected to have a full implementation by the end of Number 2023. Also, there is no specific timeline set for the second reading of the bill, and is predicted to be advised by the end of January 2024.
Furthermore, investing in cryptocurrency in Taiwan is completely legal, and the application of specific laws will help make digital asset use much more transparent, safe, and secure. The country is all set to welcome the new crypto regulations, and will soon have particular legislation to operate crypto under the Financial Supervisory Commission.
Conclusion
Taiwan, a unitary, semi-presidential democratic republic is all ready to welcome the new crypto lawsuit with all its heart. The first reading draft is proposed today and is expected to be implemented by the end of November 2024. Once passed, crypto platforms would be required to apply for the permit.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
