Taiwan Targets November for Cryptocurrency Legislation Draft

Taiwan Targets Crypto

TL;DR

  • Taiwan hopes to propose a special crypto law by the end of November, arranging with Asia’s overall crypto adoption trend.
  • Taiwan is one of the many Asian countries adopting crypto laws on a large scale. 

Taiwan Enters the Crypto Regulation Number of Asian States

Lawmakers in Taiwan are actively working towards unveiling a draft of a unique regulation by late November 2023 or possibly earlier.

Taiwan Joins the Count of Asian States Implementing Crypto Regulations
Taiwan Enters the Crypto Regulation Number of Asian States | Source: Payment Expert

Yung-Chang Chiang from Taiwan’s Legislative Yuan stated the initial crypto law draft should be ready by November.

He highlighted its necessity due to cryptocurrency’s unique nature and the need to oversee crypto businesses.

Motivated by concerns about offshore activities and aiming to prevent ‘regulatory arbitrage. Chiang led a public discussion in the legislature on October 6.

The session incorporated insights from digital asset stakeholders, scholars, and industry specialists, focusing on the proposed draft.

In related news, Taiwan’s Financial Supervisory Commission, on September 26, issued guidelines aiming to enhance protection for cryptocurrency investors. 

Taiwan’s guidelines introduce various industry regulations, ensuring clarity between exchange and client assets. They set forth processes for adding and removing digital currencies.

These rules require foreign virtual asset providers to obtain authorization from Taiwanese regulators before offering regional services.

Meanwhile, major cryptocurrency exchanges in Taiwan are forming an association to promote industry growth.

Asia – The Next Crypto Hub

Asia is rapidly positioning itself at the epicenter of the worldwide crypto movement, with data suggesting dominance by central and southern Asian nations in the digital currency arena.

Asia – The Next Crypto Hub
Is Asia The Next Crypto Hub? | Source: Techopedia

Prominent seminars in South Korea, Singapore, and Hong Kong further underline the region’s accelerated pace in cementing its stance in the decentralized finance (DeFi) sector.

ChainAnalysis’ 2023 crypto adoption index indicates a pronounced shift towards central and southern Asia, boasting six countries from the region among the top ten in crypto adoption.

An upsurge in crypto trading volumes in Asia can be attributed to the West’s market volatilities, especially with the SEC launching legal proceedings against three chief crypto exchanges earlier this year. 

This has seemingly triggered a directional shift of major crypto stakeholders towards the East.

With the U.S. taking a stringent regulatory stance against top exchanges, a considerable volume of trade, running into billions, has found its new hub in Asia

The move is specifically notable in places like:

  • Singapore
  • Japan
  • South Korea
  • Hong Kong

which recently rolled out a fresh crypto regulatory framework.

While global crypto activity has experienced a lull, exacerbated by the FTX downfall and the destabilization of the TerraUST stablecoin, there’s a noticeable resurgence in crypto adoption among lower-middle-income (LMI) nations.

Most of the leading nations in our Global Crypto Adoption Index hail from Central & Southern Asia and Africa, falling under the LMI bracket. 

Interestingly, LMI nations have showcased the most significant revival in foundational crypto engagement in the past year. 

In essence, LMI is the sole group of nations that has maintained an adoption rate surpassing its Q3 2020 figures.

Do you think Taiwan will beat the US to a more comprehensive crypto regulation?