Taiwan's new crypto regulation bill proposes fines ranging from 2 million TWD to 20 million TWD on unlicensed virtual asset service providers
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On Oct 25, Taiwanese lawmakers introduced the Virtual Asset Management Bill in the Taiwan unicameral legislature, the Legislative Yuan. The bill introduces a regulatory framework to oversee the crypto industry in Taiwan.
The 30-page bill, co-authored by 17 lawmakers, elaborates on how the crypto industry must operate within the country. The lawmakers believe that crypto assets are distinct from traditional financial products and warrant special regulations.
The bill imposes obligations on Virtual Asset Service Providers (VASPs), such as the segregation of customer funds from the company’s reserve funds, implementation of an internal control and audit system, and membership in the local trade association.
The bill has proposed fines for Virtual Asset Service Providers (VASPs) who operate without a licence. The minimum penalty is 2 million Taiwanese dollars (about $60,000), while the maximum fine is 20 million TWD ($600,000).
Existing VASPs operating in Taiwan will have a six-month grace period from the effective date of the bill to secure their licences.