Taiwan to set strict regulations on cryptocurrencies by November 2018

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Taiwan To Set Strict Regulations On Cryptocurrencies

In an attempt to implement further precautionary measures against money laundering issues caused by cryptocurrencies, Chiu Tai-san, Taiwan’s Minister of Justice, has called for cryptocurrency regulations to be set up by November 2018.

According to Chiu Tai-san the nations Ministry of Interior, the governing Central Bank, and the Bureau of Investigation will be between the major entities that will be on board while drafting a regulatory policy for the bitcoin and other cryptocurrencies. This announcement was made at the ‘Financial Industry Money Laundering Conference’, by Tai-san in an interview.

Crypto Regulations are being studied by the Government

As per the report, two domestic virtual currency operators were invited by Taiwan’s Legal Department on April 10, to study more about virtual currency operations. The department believes that this will help in preparing them with sufficient knowledge about “control mechanisms”, prior to the Asia Pacific Anti-Money Laundering Conference that will be conducted at the end of November in Taiwan.

Gu Lixiong, the Chairman of the Financial Supervision and Management Commission (FSMC), was also of the same opinion that given the rising number of thefts and frauds happening due to cryptocurrencies, the regulation will be more focused on controlling the bitcoin and other virtual currencies. All the more, in a bid to prevent bitcoin from becoming a money laundering tool, the commission has gone as far as to requesting banks to list the account of the bitcoin sales platform as a ‘high-risk account’.

Contrasting views compared to the earlier Regulatory Framework

Back in October 2017, the former Financial Supervisory Commission Chairman of Taiwan, Wellington Koo announced in front of a joint session of the parliament and the cabinet that, “Taiwan will not imply similar steps as China and South Korea in declaring an outright ban on crypto-related activity”. Whereas the head of Taiwan’s financial regulator pledged to implement a comparatively much more lenient framework, in favour of supporting the development and adoption of both cryptocurrencies as well as the blockchain technology in the country.

Also, earlier in the previous month, Yang Chin-long, the new Governor of Taiwan’s central bank, had a rather uncertain opinion regarding the function of cryptocurrencies as a payment alternative. Following several central banking counterparts around the world, exploring the possibility of a blockchain-based state cryptocurrency.

According to Yang Chin-long, he claims that “cryptocurrencies are not functioning as payments, given their highly speculative nature.”

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