Taiwan's FSC to Ban Unregistered Offshore Crypto Exchanges

Taiwan's FSC to Ban Unregistered Offshore Crypto Exchanges

Taiwan's Financial Supervisory Commission (FSC) is taking steps to regulate cryptocurrency exchanges operating within the country's borders. According to a recent report by CNA, the agency plans to ban offshore crypto exchanges that fail to comply with requests to register with Taiwanese regulators.

The FSC has drafted ten guiding principles for the regulation of virtual currencies, expected to be published later this month. The principles will then be used by public institutions to formulate specific regulatory norms, though these will remain open to amendments as research and international standards evolve.

Among the FSC's guidelines is a requirement for exchanges to implement anti-money laundering procedures. Platforms will also need to maintain separate custody of their own and customer assets, as well as meet listing and delisting review standards.

By imposing these restrictions, Taiwan joins a growing list of governments seeking greater oversight of the cryptocurrency industry. The FSC aims to protect citizens from unregulated platforms and ensure market transparency. Offshore exchanges soliciting Taiwanese customers without proper registration could face prohibition.

Major player, Binance, has already applied for a Taiwanese license and offered its anti-money laundering expertise to regulators. With the expected release of regulatory principles this month, Taiwan's cryptocurrency landscape is on track to become more formally supervised and compliant with international norms.

The FSC's prudent approach balances innovation and risk, signaling Taiwan's intention to foster a trustworthy virtual asset sector. As one of Asia's financial hubs, Taiwan's developing regulatory framework could influence cryptocurrency policy across the region.