Taiwan Launches Virtual Asset Service Providers Association: A Game-Changer in Crypto Regulation

• Taiwan’s VASP Association aims to establish ethical standards and codes of conduct for the crypto industry.
• Leaders from BitoPro and XREX will helm the association, lobbying for rigorous global blockchain policies.
• Collaboration with Taiwan’s Ministry of Justice targets fraud prevention and compliance with new AML regulations.

Taiwan made a significant move in the regulation of the crypto industry through the formation of the Virtual Asset Service Providers Association (VASP). Currently, it has 24 crypto companies as its charter members to establish its codes of conduct so that everyone can thrive without harming each other or ethical boundaries in the process, all in the interest of a supportive digital asset ecosystem in that country.

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The formation of the association was announced on June 13 with BitoPro and XREX taking leadership roles. Co-founder & CEO of BitoPro, Titan Cheng will chair the board, while XREX’s chief revenue officer, Winston Hsiao will be the vice-chairman. This position shall work towards lobbying for stringent and credible policies that the association wants to see foster the blockchain finance space around the world.

Awareness of government institutions and related law enforcement agencies is also another key area. The Association shall collaborate with Taiwan’s Ministry of Justice to manage fraud and any other unlawful attempts.

The industry will also contribute technology, industrial know-how, and infrastructure to build a common defense platform and design international transfer rules that comply with Taiwan standards.  Following this, there was a letter from the Ministry of Justice of Taiwan addressing the proposed changes to the Anti-Money Laundering (AML) rules in so far as VASPs are concerned.

According to the current provisions of the law, anyone who fails to abide by the stipulated provisions will be liable to be imprisoned for 2 years, or face a fine of $ 1.5 million as proposed in the amendments above. Taiwan’s Financial Supervisory Commission (FSC) laid down similar intentions regarding the release of new digital asset rules in September as well.

As for the formation of this association, it expects to enhance more cooperation and consensus in the industry, urge the enterprises to act by the laws, advocate for the standardization of the digital asset industry, and thus promote its healthy development. This will also help in providing more security to the required stability and transparency of the industry as well as consumer protection rights.

The director of FSC Hsiho Huang announced that this association called the Association of Virtual Asset Service Providers on June 13 and he also claimed that such formation will lead to more coordination and synchronization. This will ensure adherence to the recommended practices in the market, bring order to the sector, and ensure the market grows healthily. Besides, others will contribute to the security, transparency, and stability of the industry and improve the standing of consumer rights.

Such formation of association demonstrates that Taiwan is willing to provide safer and more comprehensive regulation for the cryptocurrency business. Through partnerships with government and police organizations, it aims to fight fraud and other crimes and therefore provides technology and expertise to develop an alliance while more on the association.

The formation of the Taiwan Virtual Asset Service Providers Association is a significant push in the right direction towards more stringent and sovereign regulatory mechanisms in the Cryptocurrency Ecosystem. Backed by the government and encouraged to engage the industry actors, Taiwan is proving to be a player that is fully committed to guarantee healthy and safe development of the digital asset market. 

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