Cryptocurrency is becoming increasingly popular, with Taiwan’s Financial Supervisory Commission (FSC) set to regulate it by June. This will be achieved through a framework expected later this year, and an initial draft that will be released soon. The Central Bank of the Republic of China is responsible for monetary policy and foreign exchange regulations, while the FSC oversees banking regulations, anti-money laundering, securities and futures.
The Ministry of Digital Affairs (MODA) had been suggested by some in Taiwan’s parliament as chief crypto regulator; however, others argued that a more specialized department should be established. Cryptocurrency platforms can now operate under Taiwan's anti-money laundering compliance system.
XREX co-founder Wayne Huang said regulated industry will help it grow, stating “We are very optimistic about the future development of cryptocurrency regulation in Taiwan...the government has been very supportive…this new regulation will benefit us all."
The decision to regulate cryptocurrency comes after a number of recent scams involving Bitcoin trading platform GAW Miners in 2014 which led to losses worth over $19 million USD. Such events have made investors wary of investing in cryptocurrencies without proper regulation or protection from fraudulent activities.
Taiwan’s initiative could potentially set a precedent for other countries around the world when it comes to regulating cryptocurrency. Countries such as India and Japan have already imposed restrictions on cryptocurrencies while Singapore has taken a more open approach towards them.
It is evident that the Taiwanese government is taking proactive steps in order to protect its citizens from fraudulent activities related to cryptocurrency trading. By introducing regulations that protect investors from financial losses due to scams, this could encourage more people to invest in cryptocurrencies with confidence knowing that their investments are secure and protected by law. Regulation also helps create transparency and trust within the industry, which can only lead to further growth and development of cryptocurrencies worldwide. It will be interesting to see how other countries follow suit with their own regulations and what effect this may have on investment opportunities within the cryptocurrency market. We look forward to seeing what happens next!