Taiwan Plans to Adopt Laws to Regulate Digital Asset Sector

Taiwan’s Financial Conduct Commission (FSC) is set to receive a mandate to regulate cryptocurrencies through specific legislation, Bloomberg has reported citing the head of the department, Tien-Mu Huang.

Speaking to CoinDesk, XREX co-founder and CEO Wayne Huang expressed his support for the pending regulatory clarity. The principles of the document are expected by June, with the draft law being finalized within the upcoming months.

The impetus for the initiative could possibly have been the collapse of FTX, as local residents were reportedly the largest users of the platform.

Previously, the island had taken a neutral approach to digital assets, requiring crypto exchanges to only comply with AML rules.

The FSC will focus on regulating payments and trade-related virtual assets, while the cabinet will be handing over the rest to other government departments. In particular, stablecoins may be overseen by the central bank.