Taiwan’s Financial Supervisory Commission (FSC) will become the main regulator of cryptocurrencies in the island nation, according to the head of the authority.
FSC chairman Huang Tien-mu has announced that the regulator will assume supervisory authority over the crypto industry in Taiwan, local United Daily News reported.
Huang addressed Taiwan’s parliament, the Legislative Yuan, on March 20 regarding the regulation of cryptocurrencies in the Republic of China (ROC). He stated that the upcoming FSC crypto regulatory framework will include key rules and policies, including the separation of customer assets from company funds and investor protection practices.
The official stated that the FSC is currently mandated by the country’s highest administrative body – the Executive Yuan – to monitor payments and transactions in the crypto market. Huang emphasized that other industry-related assets, such as nonfungible tokens (NFTs), may not be subject to FSC oversight.
Huang also noted that the first FSC will pay special attention to the principle of self-regulation in the cryptocurrency industry in Taiwan. The official added that authorities will follow the instructions of the Executive Yuan.
related: China announced plans for a new national financial regulator
According to a report by Taiwan’s Central News Agency, Taiwanese lawmakers expect to develop and approve the relevant crypto regulatory framework by the end of March or April at the earliest. Initial plans are now reportedly aimed at regulating NFTs under the supervision of the Ministry of Digital Affairs.
The news comes amid Taiwan facing ongoing tensions with China, with the Chinese government treating Taiwan as a breakaway province, which it has vowed to take control of. Unlike some crypto-friendly jurisdictions in the Asia-Pacific region, such as Hong Kong or Singapore, China has emerged as the main anti-crypto country, banning crypto in 2021.