Taiwan’s regulator not to clamp down on crypto-related activities

Maria Nikolova

The development of DLT and blockchain is seen as a a huge opportunity for innovation and economic growth for Taiwan.

Taiwan is set to take a rather soft stance regarding cryptocurrencies, as well as the technologies associated with them, according to Financial Supervisory Commission chairman Wellington Koo.

Mr Koo, quoted by The News Lens, was responding to a request for clarification on Taiwan’s stance on crypto from Kuomintang Party (KMT) congressman Jason Hsu in a joint session of parliament and cabinet. Mr Koo said Taiwan would not regulate against the distributed ledger technology. He also agreed with Hsu’s suggestion that development of distributed ledger and blockchain offers an opportunity for innovation and economic growth for Taiwan.

The statement indicates that Taiwan will not follow in the footsteps of China and South Korea by implementing an outright ban on crypto-related activities, such as initial coin offerings (ICOs).

The statement also paves the way for the successful passing of the “Financial Technology Innovation Experimentation Act” later in the current parliamentary session, according to Hsu.

“Just because China and South Korea are banning, doesn’t mean that Taiwan should follow suit – there is a huge opportunity for growth in the future,” Hsu was quoted as saying. “We should emulate Japan, where they treat cryptocurrency as a highly regulated, highly monitored industry like securities.”

Singapore, which has warned of the risks associated with ICOs, has nevertheless taken a softer stance with regard to cryptocurrencies. Last week, Mr Tharman Shanmugaratnam, Deputy Prime Minister and Minister in charge of the Monetary Authority of Singapore (MAS), clarified the official stance on cryptocurrencies by saying that “MAS does not and cannot regulate all products that people put their money in thinking that they will appreciate in value”. MAS has been monitoring the use of such virtual currencies, he said. Their use, he noted, is not prevalent in Singapore when compared to markets like Japan.

Alike most jurisdictions, MAS does not regulate such virtual currencies per se, the top government official explained. However, he added that the activities that surround them if those activities fall within MAS’s more general ambit as financial regulator, are regulated.

Read this next

Institutional FX

Euronext reports double-digit growth in FX volume

Pan-European exchange, Euronext has reported a 10 percent rebound in the average daily volume on its spot foreign exchange market. The ADV figure stood at $19.6 billion in January 2022, which is up from December’s $18 billion.

Digital Assets

Voyager subpoenas FTX’s inner circle over Alameda loan

Bankrupt crypto broker Voyager Digital, represented by law firm Kirkland & Ellis, is seeking court approval to subpoena Sam Bankman-Fried’s inner circle, as well as Alameda Research’s former executives.

Retail FX

AvaTrade seals sponsorship deal with F1’s Aston Martin team

Dublin-based forex broker AvaTrade today announced that it has concluded a sponsorship deal with Formula One’s Aston Martin Cognizant team that entails sponsorship rights and other marketing benefits.

Executive Moves

M4Markets onboards Invaxa CEO Marios Antoniou as COO

Seychelles-regulated brokerage firm M4Markets has appointed Marios Antoniou, who has a colorful career within the foreign exchange industry, in the capacity of its Chief Operations Officer.

Digital Assets

GK8 now allows clients to control their digital assets as they would their fiat

“As the institutional market is increasingly turning to self custody, our policy engine empowers them to automate transactions, approvals, and even crucial workflows, while providing the highest degree of security, consistency, governance and control.”

Digital Assets

Retail CBDCs in the UK: “Welcomed” by CryptoUK and R3, but “Dystopian” for ETC Group

“At this stage, we judge it likely that the digital pound will be needed in the future. It is too early to decide whether to introduce the digital pound, but we are convinced preparatory work is justified”, said the BoE and HM Treasury.

Institutional FX

Centroid taps Iress API to provide retail brokers with real-time market data

“It has always been a challenge to have an efficient, elegant solution for market data and order execution for retail brokers, but with Iress we have found absolutely the right partner to add to our client offering.”

Digital Assets

Ramp launches FCA-approved off-ramp product, onboards Brave, Trust Wallet, Ledger

“To obtain and maintain our FCA registration, we must meet and operate within their strict anti-money laundering and counter-terrorist financing standards. This is a huge achievement for us, as compliance is a cornerstone of our business and what we stand for.”

Institutional FX

State Street launches FIX API for Fund Connect ETF platform

“Expanding from proprietary APIs to the FIX industry standard will bring us closer to our goal of 100% digital interactions. This is another example of innovations we’ve brought to our operating model as we celebrate 30 years of servicing ETFs since the launch of SPY.”

<