The Taiwan Financial Supervisory Commission will be announced as the body that will supervise and regulate the virtual asset industry. According to a report, the collapse of crypto exchanges like FTX prompted Taiwanese officials to look for ways to protect users against similar events in case they happen again.
Self-regulation of the virtual assets industry
According to Taiwan government officials, the country’s financial sector regulator, the Financial Supervisory Commission (FSC), will become the body to oversee and regulate the country’s virtual currency industry. According to a CNA reportan announcement to this effect is expected to be made in late March or early April.
Explaining the reason behind the government’s decision to designate FSC as the body that oversees virtual assets in Taiwan, the report suggested that the collapse of FTX played a role in convincing officials to look for ways to protect users in case of another major collapse. The officials also reportedly referenced countries like Singapore, Japan, South Korea and Israel, where financial regulators control the virtual currency space.
While officials are said to be interested in the FSC taking over the virtual asset space by the end of March 2023, they still want the industry to take the lead in formulating the guidelines. Taking initiative also includes developing “self-regulatory standards”. According to the report, such standards are necessary when establishing internal control points.
Once the proposals on regulating the virtual asset space have been submitted, Taiwan’s so-called executive yuan will be tasked with approving them.
Meanwhile, the report says that while the FSC is expected to oversee virtual currencies and cryptocurrency exchanges, other assets, such as non-fungible tokens (NFTs), are likely to fall under the control of a different regulatory body. Stablecoins, on the other hand, are likely to be supervised by the country’s central bank, the report added.
What are your thoughts on this story? Let us know what you think in the comments section below.
image credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or a solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
