The recent surge in Bitcoin prices following Donald Trump’s growing chances of being elected president of the United States has seen his broad pro-crypto support begin to take effect. This in turn appears to have prompted the Financial Supervisory Commission (FSC) of Taiwan to announce it would inspect six virtual asset operators in November and December this year, and issue an investigation report in December, said the FSC Inspection Bureau Director Tung Zhengzhang. Inspections last year highlighted significant deficiencies in four major areas of the sector. Taiwanese Financial Supervisory Commission will also impose a registration system for Virtual Asset Service Providers (VASP) from November 30 this year. Twenty-six operators have already been confirmed as complying with all anti-money laundering laws.
Courting blockchain’s potential, Trump’s welcome to digital assets could shape coming revisions to the legislation, with the FSC weighing a special ‘Virtual Assets Management Act’ that advances a cautionary model for future entrants. One thing is clear: FSC chairman Peng Jinlong has made it a priority to clarify the scope and operation types, encompassing what exactly constitutes virtual asset service providers (commonly known as VASPs) and the pressing need for regulation across the various dimensions of VASPs – from trading platforms to exchange operators to custodians. Initial consultations began this summer, with public hearings tentatively scheduled for early next year to deliberate regulatory focuses such as licensing conditions, consumer protection, capital requirements, custodians’ requirements, and market behaviour norms.
In addition to its heightened scrutiny of VASPs, the FSC has relied on the newly defined business classifications to reinforce its control over crypto business operations. Lax KYC and transaction monitoring as well as insufficient record-keeping and personal data protection were noted in previous inspections Many of the findings in the inspections relate to the introduction of strict categorisation by size and business type.
Source: 自由時報電子報
