Taiwan authorities plan to implement a legislative framework to regulate cryptocurrencies by September 2024, tightening requirements for local and international companies dealing with digital assets.

Taiwan Financial Supervisory Commission (FSC) Chairman Huang Tianzhu is concerned about the increase in cryptocurrency scams. He warned that in case of non-compliance with the rules, strict administrative penalties will be applied to crypto exchanges and platforms for trading foreign currencies. Tianzhu emphasized that digital assets are not linked to the real economy, but they carry risks associated with unregulated foreign investments.

However, the FSC Chairman emphasized the agency's interest in establishing close links between digital assets and the traditional financial system. Therefore, additional laws are needed for crypto companies to ensure the stability and security of financial markets. Tianzhu advised investors to avoid unregulated international cryptocurrency platforms to protect themselves from scammers and not lose their investments.

Taiwan Securities and Futures Commission Deputy Director Gao Jingping said that authorities are also exploring the possibility of Taiwanese investors interacting with foreign Bitcoin ETFs. The results of these studies will be presented in April. In the long term, this could expand investment opportunities for local investors, Jingping added. Taiwanese regulators began exploring the possibility of launching cryptocurrency ETFs at the end of last year in order to track the development of these investment products in other countries.

Let us recall that in December, the Central Bank of Taiwan successfully completed testing the concept of its own digital currency and the use of blockchain for interbank transfers.