Taiwan government tightens regulation of cryptocurrency industry

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Taiwan’s Ministry of Economy has classified cryptocurrency firms as finance, insurance, and real estate, and stock tokens as securities.

Taiwan News
reportedthat after years of uncertainty in the digital asset market, the Ministry of Economy of Taiwan has made clarifications regarding cryptocurrency activities. After the launch of the first bitcoin futures ETFs in the United States in October, Taiwan’s legislature believes that clear provisions need to be in place to protect local investors who might be exposed to cryptocurrency-related risks.

At a cabinet meeting, the ministry concluded that cryptocurrency firms should not be categorized as software development services, but as finance, insurance and real estate as virtual currency platforms and businesses engaged in trading activities. Issuers of share tokens will fall into a subcategory of securities firms and will be subject to similar requirements.

The Financial Services Commission of Taiwan (FSC) has been appointed as the responsible body for regulating the cryptocurrency industry. It will work with tax authorities and law firms to develop regulations that will need to be followed by cryptocurrency and blockchain firms.

Taiwan’s FSC began building a regulatory framework for stock token offerings (STOs) back in 2019, and for ICO regulation in 2018.

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