Taiwan’s Crypto Protection Body Commences Activities with 24 Members
Taiwan’s newly established crypto protection agency has officially begun operations with 24 members. This entity is designed to act as a liaison between the private sector and the government, ensuring effective oversight of the cryptocurrency industry.
A Bridge Between Private Sector and Government for Crypto in Taiwan
As anticipated, the Taiwan Virtual Asset Service Provider Association (TVASPA), Taiwan’s cryptocurrency advocacy body, was formally inaugurated during an initial meeting with 24 industry entities.
According to an announcement on X and a blog post from blockchain company XREX, the association aims to facilitate collaboration between the private sector and government for the regulation of the cryptocurrency industry.
As detailed in the blog post, the association’s primary goal is to develop a comprehensive code covering sector classification, listing and delisting, consumer protection, risk management, transaction monitoring, and advertising.
The Ministry of the Interior of Taiwan approved the formation of TVASPA in accordance with the law in March 2024, and the founding meeting was held on Thursday. Titan Cheng, founder and CEO of BitoPro, will serve as president, while Winston Hsiao, Chief Revenue Officer of XREX, will be vice president.
Following the FTX scandal, Taiwan has implemented legislation to regulate the cryptocurrency sector, reversing its previously hands-off approach.
Taiwan’s Cryptocurrency Bill at the Legislative Yuan
The proposed legislation on virtual assets in Taiwan aims to define digital assets, establish operational standards for asset operators, and ensure consumer protection.
Additionally, the bill seeks to mandate industry association registration and necessary regulatory authorizations. Until now, Taiwan has taken a relatively relaxed approach, regulating only customer identification and anti-money laundering under existing laws. However, the FTX collapse, which had significant local implications due to its favorable interest rates in US dollars compared to local banks, prompted a swift regulatory response.
Unlike Japan, which requires locally licensed exchanges to use custodians, Taiwan’s bill mandates the separation of customer assets from corporate funds without requiring third-party custodians. Exchange operators must submit periodic reports on their business and managed assets to auditors, allowing regulatory bodies such as the Financial Supervisory Commission (FSC) to conduct regular inspections of their internal control and audit systems.
Although the current bill does not explicitly mention Proof of Reserves, it suggests that the regulatory authority will establish asset reporting standards in consultation with the industry and expect authorized exchanges to comply.
The cryptocurrency industry in Taiwan has welcomed this formal regulatory oversight positively.
