In a significant development, Taiwanese regulators are poised to release comprehensive guidelines for cryptocurrency platforms and trading businesses by the end of this month. The move comes after a public hearing on “Virtual Asset Supervision” was held on September 7, led by Democratic Progressive Party legislator Guo Guowen, to discuss the forthcoming “Financial Supervisory Commission Guiding Principles.” Notably, international industry giants, Binance and Bitfinex, participated in these discussions, offering insights into money laundering prevention and control.
The public hearing, which gathered various stakeholders from the local Taiwanese cryptocurrency industry, included representatives from the Digital Development Department, Legal Department, and Police Department, as well as experts from academia and legal fields. Several crucial topics were deliberated upon during the meeting, shedding light on the imminent regulatory framework. One of the central themes of the discussion revolved around how the Financial Supervisory Commission plans to guide Taiwanese businesses in complying with the upcoming regulations.
This raises questions about the potential establishment of a dedicated “Financial Technology Bureau” for supervisory purposes. Given the high compliance costs that smaller businesses may face, there was also debate surrounding the adoption of hierarchical management, distinguishing between exchanges and currency dealers. The possibility of enacting special laws tailored to the cryptocurrency industry was another topic that garnered significant attention. Additionally, there were discussions regarding the prospect of Taiwan opening the doors to leveraged derivatives trading in the cryptocurrency market.
Binance and Bitfinex’s Role in Crypto Regulation
International cryptocurrency exchange operators, Binance and Bitfinex, played a prominent role in the proceedings. Binance, in particular, offered valuable insights into money laundering prevention and control measures, drawing from its experiences and regulatory examples from other jurisdictions. This contribution comes shortly after the Financial Supervisory Commission disclosed that Binance had submitted a statement on security laundering, signaling its interest in establishing a presence in Taiwan.
An intriguing aspect of this development is the question of Binance and Bitfinex’s status as Taiwanese companies. Both are significant players in the global cryptocurrency exchange landscape and have registered companies within Taiwan. In addition to the revelation of Binance’s Taiwan-registered entity, “SEYCHELLES Co., Ltd.,” Binance International Limited Taiwan Branch (SEYCHELLES), it was disclosed that Bitfinex has long been registered as a Taiwanese company, initially establishing “British Virgin Islands Merchant Affinis Co., Ltd.” in Taiwan in 2015.
However, as of now, neither Binance or Bitfinex are included in the list of defense statements. The engagement of these international cryptocurrency exchange giants in these discussions highlights the importance of Taiwan’s burgeoning cryptocurrency industry and the need for clear regulatory guidelines. As the cryptocurrency market continues to evolve globally, Taiwan appears poised to establish a robust regulatory framework that accommodates both established industry players and emerging businesses while addressing concerns related to security and compliance.
The cryptocurrency industry in Taiwan eagerly awaits the “Financial Supervisory Commission Guiding Principles” with the hope that it will not only provide clarity but also foster a conducive environment for innovation and growth. As these regulations take shape, they will likely serve as a blueprint not only for Taiwan but also for other jurisdictions navigating the evolving cryptocurrency landscape. Taiwan’s commitment to striking a balance between oversight and industry development is poised to set a noteworthy precedent in the international cryptocurrency arena.
Source: https://blockchainreporter.net/taiwan-regulators-to-issue-cryptocurrency-guidelines-binance-and-bitfinex-join-discussions/