Taiwan’s Financial Supervisory Commission Set to Regulate Country’s Virtual Assets Industry – Taiwanese government officials have stated that the Financial Supervisory Commission (FSC), the country’s financial sector regulator, will be taking on the responsibility of overseeing and regulating Taiwan’s virtual currency industry. A report from CNA indicates that an official announcement regarding this decision is expected to be made in late March or early April.
The report suggests that the government’s decision to entrust the Financial Supervisory Commission (FSC) with the regulation of virtual assets in Taiwan was influenced by FTX’s collapse. The authorities are said to have been convinced of the need to safeguard users in the event of a similar failure. The report also notes that officials pointed to other countries like Singapore, Japan, South Korea, and Israel, where financial regulators are responsible for overseeing the virtual currency industry.
Although officials reportedly aim to have the Financial Supervisory Commission (FSC) take charge of the virtual assets sector by March 2023, they are still interested in having the industry itself develop guidelines and lead the way. This includes creating “self-regulatory norms” that would be useful in establishing internal control points, as stated in the report. After the proposals regarding the regulation of virtual assets are submitted, they will be subject to approval by Taiwan’s executive yuan, as stated in the report.
Moreover, while the Financial Supervisory Commission (FSC) is anticipated to be responsible for regulating virtual currencies and crypto exchanges, other assets such as non-fungible tokens (NFTs) are expected to come under the jurisdiction of a distinct regulatory body. According to the report, stablecoins are likely to be overseen by the country’s central bank.