Taiwan’s cryptocurrency sector is forging vital connections with El Salvador to bolster its regulatory capabilities. Recently, the Taiwan Cryptocurrency Association has revealed its establishment of formal communication channels with key authorities in El Salvador.
Law Enforcement & Crypto Challenges
This initiative signifies a concerted effort to foster collaboration with the El Salvador Virtual Assets Bureau, the Central Bank, and the Presidential Office. The objective is to pave the way for creating a Virtual Assets Bureau in Taiwan, ensuring robust regulatory capabilities for the burgeoning crypto sector.
The cryptocurrency conversation in Taiwan took center stage during a recent public hearing on “Virtual Asset Supervision,” led by Kuo Kuo-wen, a legislator representing the Taiwan Democratic Progressive Party.
The meeting delved into pivotal topics, including the potential formation of a specialized “Financial Technology Bureau” for regulatory purposes and the feasibility of introducing leveraged derivatives trading.
Representatives from prominent cryptocurrency exchanges, Binance and Bitfinex, participated in the discussion. The meeting minutes highlighted key insights from various stakeholders:
Huang Xihe, the Securities Dealers Management Group leader at the Financial Supervisory Commission, emphasized the imminent establishment of the Virtual Currency Business Association.
He noted that while the industry association should develop internal guiding principles, forming a special law might be time-consuming. Currently, reliance on independent industry association management remains crucial.
Shi Weiren, deputy director of the Digital Industry Administration of the Digital Department, emphasized the transnational nature of blockchain technology and its potential applications in various industries, such as evidence storage and verification.
The Procuratorial Department of the Ministry of Justice’s You Liling actively collaborates with the Police Department to combat fraud, especially among individual currency dealers and small-scale operators. They recommended standardizing regulations across the board.
Lin Mingjun, Chief of the Economic Section of the Police Department, underscored the need for legal oversight to address fraud and money laundering challenges, advocating for both platforms and over-the-counter operators to be included in regulatory frameworks.
Maicoin Chief Operating Officer Chen Minghui supported specialized legislation, focusing on tiered management based on operator size and commodity differentiation. He also highlighted the difficulty in implementing joint fraud prevention measures.
Binance Global Partnership’s He Xuanrong emphasized the importance of transparent asset separation, verification by accountants, and comprehensive employee training.
The cryptocurrency community eagerly awaits further developments as Taiwan’s regulatory framework evolves to accommodate the rapidly growing digital asset industry.
Collaborative efforts among industry stakeholders, government bodies, and financial institutions hold the key to achieving a balanced and effective regulatory approach.
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