Taiwan Authorities Imposes Stricter Policies on Cryptocurrency, Lists Cryptocurrency Under New Category
Taiwan authorities have switched up the game for those in the crypto industry, as they have come with a new set of laws to regulate the industry. In a bid to support their goals, Taiwan’s Ministry of Economic Affairs has decided to change the category of crypto businesses from being listed under the ‘software design services’ category to Finance, Insurance, and Real Estate bearing the name Virtual Currency Platforms and Trading Businesses. The ministry made this announcement in the country’s recent cabinet meeting.
As the switch is made, the ministry further disclosed that the Financial Supervision Commission will be charged with the responsibility overseeing crypto businesses. In addition, the commission will be responsible for monitoring and updating taxation policies for businesses that operate with digital currencies.
New Policies Will Intensify Crackdown on Cryptos
The intent of the new crypto policy is to intensify the country’s clampdown on crypto activities. Since most crypto businesses in the country operate without a license, it was necessary for the right authorities to crack down on these businesses.
In addition, many unlicensed crypto businesses are defrauding investors with the promise of great returns on investments and engage in unlawful crypto transactions under the disguise of a legitimate business. Taiwan authorities looked into this and decided to come up with a policy and initiative to hunt these businesses down to safeguard local investors and consumers.
The move to regulate the crypto industry shouldn’t come as a surprise, considering the FSC Chairman’s actions in early November. Chairman Huang Tien-mu, met with government enterprises, such as the CB and the Ministry of Economy to discuss how best to manage digital assets in the country.
Before now, many MPs had voiced their concerns regarding the volatility of cryptocurrency, especially Bitcoin, stressing that digital assets can easily be manipulated by influential people. The MPs concluded that cryptocurrency should be levied and controlled by relevant authorities. Huang Tien-mu argued that the policies will reflect on the current situation.
He added that the policies will come from both worlds. That is the FSC will use the international government’s “wait-and-see” approach and crypto market supervision. Tien-mu said that since cryptos are classified as general communities and not as financial assets, it was correct not to have any regulatory authority to monitor cryptocurrency in Taiwan.
The Demand for Crypto Regulations Continue
The call to regulate the crypto industry has become widespread owing to the crypto exchange hacks and the use of these assets to commit and fund crimes. The SEC Chief has always emphasized the need to regulate the industry, and had held a series of discussions with the U.S Treasury and other major players on how best to regulate it alongside stablecoins.
While the demand continues to grow, countries, such as Hong Kong, Singapore, and China have implemented certain policies that drove a number of exchanges away from the countries. Huobi and Binance are some of the victims, and there’s no guarantee that more exchanges will remain by the end of the year.
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