Taiwan to Ban Unregistered Bitcoin and Cryptocurrency Exchanges!

• Taiwan plans to restrict foreign cryptocurrency exchanges from operating within the country’s jurisdiction without proper compliance registration as part of future guidance principles for crypto companies.
• Since July 2021, Taiwan has required Virtual Asset Service Providers (VASPs) to adhere to anti-money laundering laws following the Financial Supervisory Commission’s (FSC) introduction of rules to combat money laundering.
• COINOTAG reported last month that Binance, the world’s largest cryptocurrency exchange, applied for registration in Taiwan for AML compliance. Binance established a local unit called “Binance International Limited Taiwan Branch (Seychelles).”

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According to recent information, Taiwan has announced that it will ban exchanges if foreign exchanges fail to register in the country; Taiwan is advancing crypto regulations.

A Stern Move by Taiwan Against Exchanges

Taiwan plans to restrict foreign cryptocurrency exchanges from operating within the country’s jurisdiction without proper compliance registration as part of future guidance principles for crypto companies, as confirmed by a government official today in an interview with COINOTAG.

Taiwan’s Financial Supervisory Committee has prepared a draft of ten guiding principles for virtual asset service providers to develop their self-regulatory rules, as initially reported by Taiwan’s semi-official agency.

In the Thursday interview with COINOTAG, an FSC official stated that the regulator plans to officially publish the guiding principles at the end of this month.

These principles are expected to include requirements to strengthen information disclosures, establish review standards for listing and delisting virtual assets, and ensure companies and customers segregate and safeguard their assets.

A significant restriction is the strict ban on foreign crypto companies doing business. The FSC plans to specify in the guiding principles that foreign VASPs will not be allowed to operate in Taiwan or serve local residents unless they register in compliance with company laws and report compliance with anti-money laundering regulations to the FSC.

Binance Seeking AML Compliance Registration

Since July 2021, Taiwan has required Virtual Asset Service Providers (VASPs) to adhere to anti-money laundering laws following the Financial Supervisory Commission’s (FSC) introduction of rules to combat money laundering. Otherwise, they would remain largely unregulated in the country.

COINOTAG reported last month that Binance, the world’s largest cryptocurrency exchange, applied for registration in Taiwan for AML compliance. Despite not being regulated in Taiwan, the Trade Department’s database showed that Binance had approved the registration of a company with a capital of 30 million New Taiwan dollars (approximately $937,000 USD) in Taiwan on May 12, 2023.

Last month, the Ministry of Economic Affairs announced that it was proposing to add a new business category to relevant regulations, which aimed to facilitate the establishment of industry associations by crypto-related companies and encourage the development of self-regulatory guidelines.