Taiwan lawmakers want to create a new law for cryptocurrencies to avoid potential issues with offshore exchanges. They think regular rules might not be enough because crypto is different from traditional finance. A lawmaker named Yung-Chang Chiang thinks there should be a special law just for crypto. He held a meeting to talk about this idea with people from the crypto industry and experts.
The new law would make all crypto platforms in Taiwan get a special permit. If they don’t, regulators could tell them to stop working. Right now, crypto businesses in Taiwan only have to follow anti-money laundering rules. But without a special law, regulators can’t do much if they don’t follow the rules.
Chiang thinks it might be hard to make this law happen quickly because there’s an election coming up, and the government is more focused on reviewing its budget. The financial authorities in Taiwan might also suggest their version of the law, but that might not happen until at least mid-2024.
At the same meeting, a representative from Binance, a big crypto exchange, said that crypto platforms in Taiwan have a hard time getting banking services. Even though the government said banks shouldn’t treat them as too risky, they still face many problems. Binance is trying to get registered in Taiwan to follow anti-money laundering rules.
Another person from a crypto exchange in Taipei, Winston Hsiao, thinks that the crypto industry should be regulated based on its size. Small companies can follow rules made by the industry, but big ones need a special permit and maybe other financial licenses.