Taiwan Targets Offshore Platforms In Crypto Regulations Draft

Taiwan revealed new crypto guidelines focused on restricting unlicensed offshore platforms from operating locally without proper registration and compliance. 
By Sunil Sharma
15 hours ago Updated 15 hours ago
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The Financial Supervisory Commission in Taiwan has introduced new guidelines to tighten regulations surrounding cryptocurrencies and virtual assets. According to a Central News Agency report, the main focus is restricting offshore platforms from operating in Taiwan without proper registration and compliance.

Overseas Platforms Must Register to Operate in Taiwan

The Commission has finalized 10 principles expected to be officially published by the end of September. The rules aim to improve practices related to information disclosure, internal controls, and AML/CFT compliance and prohibit illegal solicitation by overseas exchanges. 

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A key priority is curbing unlicensed offshore cryptocurrency platforms from conducting crypto business in Taiwan or soliciting citizens without following domestic registration and compliance requirements.

The guidelines stipulate that overseas entities must register per the Company Law and submit AML/CFT compliance statements to the Commission to operate in Taiwan. Failure to do so prohibits conducting any business in the Taiwanese crypto market.

For domestic platforms, comprehensive regulations cover reviewing and listing tokens, publishing issuer whitepapers, separating customer and company assets, enacting robust security and critical management systems, increasing transparency through transaction info disclosures, and implementing anti-money laundering controls.

The rules also dictate that individual crypto dealers must uphold AML/CFT measures on par with legal entities. All platforms would be subject to potential audits by the Commission as the designated regulatory body.

Part of a Progressive Regulatory Approach 

According to officials, these 10 principles represent the initial phase of crypto oversight in Taiwan, to amend formal regulations eventually. After publishing the guidelines, industry associations would formulate additional self-regulatory standards. The Commission plans to monitor international best practices and revise policies accordingly through a progressive approach.

The move demonstrates Taiwan’s aim of balancing innovation and oversight by focusing initial rules on information disclosure, consumer protection and limiting unlicensed offshore operators. Regulators hope this allows domestic players to expand services in a compliant ecosystem.

Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO's in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on Twitter at @sharmasunil8114 and reach out to him at sunil (at) coingape.com
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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