The association aims to shape the future of the crypto industry through self-governance.
Taiwan is taking no chances with its crypto sector and, as such, has taken a major step towards self-regulation. This follows after the country officially formed an industry association today as part of its commitment to developing a robust framework that will oversee its rapidly evolving digital asset space.
Taiwan Crypto Firms Join Forces for Regulation
According to the Thursday announcement, the association, named the Taiwan Virtual Asset Service Provider Association (TVASP), marks a turning point in the way that Taiwan has been approaching crypto regulation. Established by 24 crypto firms already registered with the Financial Supervisory Commission (FSC) for anti-money laundering (AML) compliance, the association aims to shape the future of the industry through self-governance.
Led by Titan Cheng, CEO of major Taiwanese exchange BitoPro, and Winston Hsiao, co-founder and chief revenue officer of XREX, the TVASP Association has its sights set on developing clear and concise guidelines for the industry.
For what it’s worth, Taiwan’s FSC has claimed many times that it will continue to support responsible growth within the crypto sector. “We recognize the vital role a healthy virtual asset industry plays in our society and economy,” stated Hsiho Huang, director of the FSC’s securities firms division.
Therefore, it may appear that the establishment of the TVASP Association already aligns with this vision.
As earlier stated, the association will primarily focus on establishing self-regulatory guidelines, particularly regarding the classification and grading of VASPs (Virtual Asset Service Providers). That is as the system aims to strike a balance between industry growth, government oversight, and consumer protection.
Building on Existing AML Regulations
Taiwan has already made reasonable progress in regulating crypto. Since July 2021, the FSC has mandated AML compliance for crypto service providers. Also, just last month, the Ministry of Justice proposed amendments to existing AML laws. These amendments sought to make it a requirement for domestic and foreign crypto firms to first register for AML before they can operate within Taiwan. According to the proposal, any firm found wanting in the area of compliance could face imprisonment penalties of up to two years.
By Forming the TVASP Association, it appears that crypto firms are taking it upon themselves to create a responsible and well-regulated crypto ecosystem. That is by working hand in hand with the government to ensure a thriving and secure digital asset environment.
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