A consortium of 24 cryptocurrency companies has joined forces to establish the Taiwan Virtual Asset Service Provider (VASP) Association, with the goal of creating self-regulatory standards for the digital asset industry in Taiwan. BitoPro founder and CEO Titan Cheng has been appointed as chair of the association, while Winston Hsiao, chief revenue officer of XREX, will serve as vice chair. The group aims to promote strong and fair regulations that will support the global growth of blockchain finance and combat fraud and other criminal activities within the industry through collaboration with the government, the Ministry of Justice, and law enforcement agencies.
As a member of the association, XREX plans to contribute technology, industry knowledge, and infrastructure to develop a joint defense platform and establish international transfer rules that align with Taiwan’s requirements. This includes creating currency flow scanning and tracking technology that is consistent with Taiwan’s patterns of money laundering and fraud. The formation of the VASP association follows a proposal by Taiwan’s Justice Ministry to amend the Anti-Money Laundering (AML) regulations for virtual asset service providers. Noncompliant entities could face up to two years in prison or fines of up to $1.5 million.
Taiwan’s Financial Supervisory Commission (FSC) has announced plans to introduce new digital asset regulations in September. The establishment of the association is expected to lead to increased cooperation and consensus within the industry, promote compliance, standardization, and healthy development, ensure the safety, transparency, and stability of the industry, and enhance consumer rights protection. Taiwan is poised to impose restrictions on offshore cryptocurrency exchanges operating within its jurisdiction unless they obtain the necessary registration, in line with the FSC’s ten guiding principles for VASPs aimed at establishing self-regulatory rules.
Expected to be officially released by the end of the month, the guiding principles will focus on areas such as strengthening information disclosure, setting review standards for virtual asset listing and delisting, and ensuring the separation and custody of companies’ and customers’ assets. The FSC will strictly prohibit illegal business solicitation by foreign crypto firms and require them to register in compliance with company law and declare their adherence to anti-money laundering regulations. Failure to do so will result in these firms being prohibited from soliciting business within Taiwan or from domestic residents. The Taiwanese government is committed to fostering a robust regulatory environment for the digital asset industry that promotes integrity, transparency, and compliance.
