Taiwan Could Ban Offshore Crypto Exchanges’ Operations

It has been just reported that Taiwan could soon ban offshore crypto exchange operations. Check out the latest reports about this below.

It has been confirmed by a government official that Taiwan intends to impose limitations on offshore crypto exchanges, preventing them from operating onshore without completing proper compliance registration.

The Financial Supervisory Commission of Taiwan has developed ten guiding principles for virtual asset services providers to create their own self-regulatory rules.

This was first reported by Taiwan’s semi-official Central News Agency. During a call with The Block on Thursday, an FSC official revealed that the regulator plans to release the guiding principles officially by the end of this month.

The official has stated that certain principles are to be implemented, which will include measures to improve information disclosure, establish review standards for virtual asset listing and delisting, and ensure the safety and custody of both company and customer assets.

Another significant restriction will be the strict prohibition of illegal solicitation of business by foreign crypto firms.

The FSC intends to specify in the guiding principles that foreign VASPs must register according to company law and declare their compliance with anti-money laundering regulations to the FSC in order to conduct business within Taiwan or to domestic residents.

In July 2021, Taiwan introduced anti-money laundering laws that require VASPs to comply. However, the crypto industry in the country mostly remains unregulated.

Recently, Binance, the largest crypto exchange globally, has applied for registration in Taiwan to comply with AML regulations.

Although Binance is not currently regulated in Taiwan, it has established a local entity called “Binance International Limited Taiwan Branch (Seychelles),” as per the Department of Commerce’s database.

The registration information indicates that Binance’s company registration was approved by the government on May 12, 2023, with a registered capital of NT$30 million ($937,000) in Taiwan.

The Ministry of Economic Affairs also announced plans to create a new business category in relevant regulations to facilitate the establishment of industry associations for cryptocurrency-related companies. This move is intended to promote the development of self-regulatory measures.