In an effort to improve industry monitoring, Taiwan’s financial watchdog recently released a set of guiding principles for cryptocurrency issuers and businesses.
The Financial Supervisory Commission (FSC), which was confirmed to be in charge of overseeing the industry in March, stated that its guiding principles aim to increase client safety by assuring transparency, solid asset custody procedures, and strengthening firms’ internal controls and management.
The new guidelines require exchange platforms to put up a review system for listing and delisting virtual assets, while cryptocurrency producers would be required to publish a white paper.
The regulator stated that companies should keep platform assets and client funds separately in addition to other regulations. Before offering their services to customers, foreign corporations will need to register locally in compliance with corporate and anti-money laundering legislation.
Global crypto regulation is escalating in the wake of the massive market crash of 2022, with increased focus on how businesses manage their clients’ funds following court filings in cryptocurrency exchanges. The bankruptcy proceedings for FTX indicated there may have been a mix-up of consumer monies and corporate assets.
In order to enhance its own frameworks, the FSC cited recent crypto rules from the European Union, Japan, and South Korea, according to a press statement on the advice publication.
In order to further improve customer protection, industry and self-regulatory bodies will need to create standards based on the new guiding principles, the FSC said.