Taiwan stepped one step closer to regulating the digital assets industry under precise rules & laws.
The crypto sector is unregulated under the jurisdiction of Taiwan but all the crypto companies are required to comply with the country’s anti-money laundering laws, to prohibit potential illegal crypto fund transactions. However, Taiwan has its rules & laws separate from China but China considers Taiwan as its special administrative region.
On 27 Oct 2023, Taiwan’s legislative body, the Legislative Yuan, officially introduced the “Virtual Asset Management Regulations” bill to bring comprehensive laws to regulate the crypto sector.
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BREAKING: Taiwan officially proposes #crypto bill with first reading passed at parliament. pic.twitter.com/zKQhJJEXTs
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Initially, this bill was proposed by 17 Taiwanese legislative lawmakers on 18 Sep 2023 with the vision to regulate the crypto sector under the precise rules & laws.
As per reports, Taiwan’s crypto bill is a response against the suspicious crypto companies running crypto services on behalf of improper management. In short, Taiwanese lawmakers focussed on prohibiting the entry of those crypto companies which may lead to huge losses for the citizens e.g. FTX crypto exchange Terra crypto-like crypto projects.
China, crypto, & Conflict
China already banned cryptocurrencies in late 2021 but trading of cryptocurrencies is fully legal in Taiwan as well as in Hong Kong’s jurisdictions.
China always claims Taiwan & Hong Kong as an important part of China and never considers these two regions as independent countries.
However, the legal status of cryptocurrencies in these two regions is going to create a better level of pressure on China because legal clarity on crypto in Hong Kong & Taiwan will show a highly contrasting picture to isolate China from these two crypto-friendly regions.
In the past, many high-tech companies faced pressure from China for doing business in Taiwan & Hong Kong as a non-China jurisdiction. Here it will be interesting to see whether China will again think about allowing crypto companies to operate services in mainland China or will try to find out other ways to create pressure.
Read also: Password recovery firm invites former Ripple CTO to unblock his 7,000+ BTC container hard drive
Taiwanese legislative parliament passes new crypto bill
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