TaiwanCrypto

Taiwan is tightening its grip on the cryptocurrency industry with a proposed "Virtual Asset Service Act." This new law aims to introduce strict licensing requirements for crypto platforms, including foreign providers. However, it raises concerns about pushing out smaller businesses due to increased compliance costs.
Key Highlights of the Proposed Law
Stricter Licensing: All crypto platforms, including international ones, must establish entities in Taiwan and obtain approval.Higher Compliance Costs: Firms will need to meet regulatory standards similar to financial institutions.Potential Market Consolidation: Smaller firms may struggle to survive under the new capital requirements.Public Consultation: The Financial Supervisory Commission (FSC) will gather public feedback until June before finalizing the law.
How Will This Impact Crypto Businesses?
1. Compliance Costs on the Rise
Taiwan already enforces anti-money laundering (AML) laws, with penalties including fines of up to NT$5 million ($150,400) or imprisonment.Legal experts argue that the new act will further raise operational costs, making it difficult for small and mid-sized firms to compete.
2. Small Firms at Risk
Currently, companies with NT$30M–50M in capital can operate under the existing framework.Under the new law, even firms with NT$300M–500M in capital may struggle to meet the stringent financial requirements.
3. Liquidity Challenges
Some local exchanges already face liquidity issues.Tighter regulations may further limit access to cross-border liquidity solutions.
Call for Balanced Regulations
Industry leaders, including Binance's APAC team, emphasize the need for a balanced approach that ensures both investor protection and market accessibility. Experts urge regulators to consider tiered regulations that ease the burden on smaller players while still maintaining security standards.
What’s Next?
The law will undergo its first reading soon, with final approval expected by year-end.The FSC is accepting public feedback until June before submitting the final draft for government review.The crypto industry awaits whether Taiwan will strike a balance or favor large firms in its final regulations.

#CryptoRegulations #TaiwanCrypto #BlockchainLaw

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📢Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your research before making investment decisions.