Taiwan Unveils Comprehensive Crypto Regulations, Bans Unregistered Foreign Exchanges

Recently El Salvador and Taiwan have been working together towards the Virtual Assets Bureau, including the regulatory frame.

Recently the Legislative Yuan published 10 key points that are dictating the trend of the "crypto law", it is expected to have the whole law approved by November.

Here are the 10 key points for exchange to run :legally" in Taiwan:

1. Management of Virtual Asset Issuance: If virtual assets are issued through the platform, the issuer should disclose a whitepaper on their website (with certain required information), and the platform should provide a link to this website.
2. Review Mechanism for Listing and Delisting Virtual Assets: The platform should establish review standards and procedures for the content of virtual asset whitepapers and incorporate them into their internal control system.
3. Separation and Safeguarding of Platform and Customer Assets: The platform should separate and safeguard customer legal currency or virtual assets received for virtual asset trading and payment collection from its own assets.
4. Fairness and Transparency of Transactions: The platform should establish virtual asset trading rules, publish them, and create mechanisms to ensure fair market transactions.
5. Contract Formation, Advertising, and Complaint Handling: The platform should adhere to principles of fairness, equity, reciprocity, and integrity when implementing customer protection regulations.
6. Operation System, Information Security, and Management of Cold and Hot Wallets: The platform should establish management systems for ongoing operations, information security, and private keys for cold and hot wallets.
7. Information Disclosure: The platform should provide comprehensive public disclosures regarding virtual asset issuance, product listing and delisting, asset separation and safeguarding, transaction information and rules, and customer protection.
8. Internal Controls and Institutional Audits: The platform should establish internal control and self-audit mechanisms, ensuring that they operate independently and objectively. They should also consent to on-site audits conducted by the FSC or authorized organizations.
9. Personal Currency Traders: Individuals engaged in virtual asset businesses who declare compliance with Anti-Money Laundering regulations to the FSC must make declarations of similar quality and content to those of legal entities.

10. Foreign Crypto Traders(Exchange): Overseas virtual asset platform operators who have not registered under company law and have not declared compliance with Anti-Money Laundering regulations to the FSC are prohibited from conducting business solicitation within our country or to our citizens.

    Source: Taiwan FCS