Taiwan authorities have struck back after a long haul, changing the game for crypto businesses in the area. At the latest Cabinet meeting, Taiwan’s Ministry of Economic Affairs (MOEA) announced the switch, changing the crypto businesses’ category, further listing them under “finance, insurance, and real estate” as “virtual currency platforms and trading businesses”, after removing them from the “software design services” category. In accordance with this switch, now the Financial Supervisory Commission (FSC) will serve as the core authority responsible for legal oversight, along with carving out and updating the taxation policies for cryptocurrency businesses. This was done with the sole intent to crackdown on crypto in Taiwan, as the area’s legislative body has already begun actively taking initiatives to clamp down crypto loopholes to further protect local investors and consumers.
Taiwan chooses Middle ground for Crypto Regulation
However, this move should not be surprising given the FSC Chairman, Huang Tien-mu’s actions at the beginning of this month. He had met with “major ministries” and government entities, such as the Central Bank, the Ministry of Finance, the Ministry of Economy, and the National Development Council to discuss possible regulatory action for “the management” of crypto assets in Taiwan.
According to the China Times, many MPs had already raised concerns regarding the volatility issue in cryptocurrency, further emphasizing that crypto can easily be “manipulated” by “major powers”. These MPs, therefore, concluded that virtual currencies should be levied as “not suitable for sale in Taiwan” and “should be controlled” by the authorities. To crypto crackdown demands, the FSC chief argued to carry out policies from both worlds, including the international governments’ “wait-and-see” approach to crypto market supervision, along with hinting at the need for regulations, since crypto did not classify as a “financial asset,” but as a “general commodity,”. He noted that, “It is correct that there is no specific [regulatory] authority that has authority over virtual currencies in Taiwan.”
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