From what I gathered, the bill seems to strike a balance between regulation and industry freedom. It proposes some common-sense obligations for virtual asset service providers (VASPs). For instance, VASPs are required to separate customer funds from the company’s reserve funds, establish an internal control and audit system, and join the local trade association. These seem like good practices to ensure transparency and security in the crypto world.
Interestingly, the bill doesn’t currently demand stablecoin issuers to hold a 1:1 ratio of reserve funds, and it doesn’t mention algorithmic stablecoins. I wonder how this will play out in the long run, especially with the rise of algorithmic stablecoins in recent times.
Also, in terms of penalties, the bill suggests fines for VASPs operating without a license, ranging from 2 million to 20 million Taiwanese dollars. That’s a significant sum and might make VASPs think twice before operating without proper authorization.
Moreover, it's worth noting that the Taiwanese Financial Supervisory Commission (FSC) released industry guidelines for VASPs back in September 2023. Foreign VASPs are strictly prohibited from providing services in Taiwan without obtaining necessary approvals from the regulator.
A positive development in light of these regulations is the formation of the Taiwan Virtual Asset Platform and Transaction Business Association. Major cryptocurrency exchanges in Taiwan, including MaiCoin, BitstreetX, Hoya Bit, Bitgin, Rybit, Xrex, and Shangbito, have joined forces to create this self-regulatory association. They aim to support the crypto industry and collaborate closely with regulators.
What are your thoughts on these developments? Do you believe these regulations strike the right balance between fostering innovation and ensuring investor protection? Let's discuss and share our insights! 🚀
