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Taiwan to introduce fresh regulations for Cryptocurrencies

Taiwan is one of the Asian countries that offer chips to mine bitcoin. Therefore, it is quite natural that the country is slowly shifting itself from hesitation to relaxing its approaches towards the cryptocurrency market. This is also evident when its minister of justice, Chiu Tai-San, indicated that the nation has a plan to introduce fresh regulations for the digital coin sector later this year. Though it is premature, this effectively suggested that the country is open to cultivate the promising sector rather than curb their activities.

Money Laundering

Chiu Tai-San was speaking at a conference of anti-money laundering (AML) where he indicated that Taiwan would establish new regulations for bitcoin and other digital currencies cointelegraph reported. The Taiwan Financial Services Coalition has held the conference that was dedicated to AML. The minister indicated that the regulations’ objective would be to restrict virtual currencies from being used as instruments for money laundering. The minister hinted that the fresh regulations could come into force in November this year.

Japan has already introduced fresh regulations for cryptocurrency market after the country faced hacking or stealing of digital currencies from the exchanges. At the global level, there were more concerns about money laundering activities with the help of virtual currencies. This is one of the issues that every government was keen to address it so that the promising market could thrive. Ripple also expressed its opinion that other countries should emulate Japan in framing fresh guidelines for the cryptocurrency sector.

Taiwan has suggested that the Financial Supervisory Commission (FSC) will engage Interior Ministry, the Investigation Bureau and the Central Bank for consultations on the subject. The group will find out the relevant laws, control mechanism and regulations for the digital currency industry. Earlier, the FSC has advised banks to register trading in bitcoin as ‘high-risk accounts’ as part of its AML program. Last year, financial institutions were advised to issue a warning to its customers about risks involved in investing bitcoin. The banks were also told to advise customers not to accept bitcoin.

Significantly, the latest development came on the heels of the European Parliament favoring AML reforms in the region. This included strict regulations in respect of cryptocurrency. The objective is to ensure transparency so that large-scale suppression of funds could be prevented. Aside from that, the new regulation would focus on trading firms to disclose digital coin holders.

Solid Future

Though Taiwan has remained neutral on cryptocurrency officially, it cannot be ignored that it is home to 25,000-odd blockchain community. The country is also keen on set itself for a bright future in the digital coin segment. The Asian nation is very clear that it was not going to do any good by following China in banning the virtual currency or ICOs. However, the country wanted to emulate Japan that is engaged in increased regulations and monitoring.

Meanwhile, one of the beneficiaries of growing cryptocurrency market is Taiwan Semiconductor Manufacturing Company (TSMC) that reported strong results for the first quarter. Its president and co-CEO, C.C. Wei, admitted recently that the results were due to increased performance from computing like digital currency mining.

About the author

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Prateek Kulhari

Prateek is a business editor who writes about various topics such as technology, health and finance. At Pressly, he works along with the colourful folks that build a nation through tech startups. He is also a professional football player and video games enthusiast.