Taiwan and El Salvador join forces to enrich crypto regulation

Wu Blockchain’s X post reveals that the Taiwan Crypto Association communicated with El Salvador’s Virtual Assets Bureau, Presidential Office, and central bank, calling for enhanced regulatory capabilities.

Taiwan’s current rules don’t allow cryptocurrency derivatives trading and stablecoin issuance, stressing the need for legislation to support the crypto market.

El Salvador remains among the few crypto-friendly countries. It made Bitcoin a legal tender in September 2021.

Taiwan’s crypto regulation stance

Taiwan’s latest Virtual Asset Supervision public hearing by legislator Kuo Kuo-wen saw crypto discussions dominating. They highlighted various topics with potential creation, including leveraged derivatives trading and introducing a devoted Financial Technology Bureau.

Attendees included representatives from Bitfinex and Binance crypto exchanges. The Virtual Assets Bureau will enhance crypto trader protection and oversee digital asset trading activities.

Further, a local source revealed that Taiwan will introduce its VASP guidelines by the end of September. The Financial Supervisory Commission (FSC) will monitor digital currencies, fight money laundering, and ensure crypto firms and exchanges comply with set regulations.

FTX crisis triggered Taiwan’s crypto regulation push

Taiwan was among the regions with a hand-off crypto regulation stance, only monitoring the asset class to avoid money laundering. The authorities licensed 24 cryptocurrency firms under the anti-money laundering system in September 2022.

Nonetheless, FTX’s debacle prompted regulators to ensure regulation. The now-bankrupt exchange attracted many Taiwanese with its friendly interest rates for USD deposits.

While mainland China banned crypto mining and trading, the latest moves by the Taiwan Crypto Association match the efforts by regulators to ensure control over the ever-changing crypto industry, focusing on a robust regulatory framework.