Taiwan’s Ministry of the Interior has granted approval for the establishment of an industry association in the country’s cryptocurrency sector, marking a significant milestone in the effort to regulate and manage the industry. The formation of this association is seen as a crucial step towards creating a more organized and transparent structure for the local crypto community. It demonstrates Taiwan’s commitment to fostering a safe and prosperous environment for digital currencies.
The approval of the industry association was achieved through the collaborative efforts of various stakeholders in the local cryptocurrency community. A task force was formed to focus on establishing the association, following all the necessary preparations according to government guidelines. The association officially opened at the end of June last year. This approach represents a departure from standard procedures, as Taiwan recognizes the importance of industry associations in promoting effective regulation and supervision to protect investors and enhance operational reliability in this rapidly growing sector.
The industry association’s task force comprises 22 crypto firms, including prominent Taiwanese companies such as MaiCoin and BitoPro. Their participation in the association highlights their commitment to self-regulation and their dedication to implementing measures that prioritize customer protection while also adhering to legal requirements. Notably, the task force decided to dissolve ACE One Exchange after investigations into its past management practices, demonstrating a commitment to ethical business conduct and responsibility within the industry.
The establishment of industry associations is viewed as a crucial step towards achieving self-governance in Taiwan’s cryptocurrency sector. While the Financial Supervisory Commission (FSC) implemented anti-money laundering regulations for cryptocurrency service providers in July 2021, the sector still lacks comprehensive control. The FSC’s standards set in September 2023 focused on ensuring customer safety and laid the groundwork for developing autonomous regulatory procedures that strike a balance between innovation, consumer protection, and market integrity. The creation of industry associations is expected to facilitate this process by providing appropriate reinforcement frameworks.
The formation of a cryptocurrency association in Taiwan is not merely an administrative procedure; it is a proactive step towards positioning the country as a leader in responsible and sustainable growth in the crypto industry. By fostering collaboration among stakeholders, the association aims to establish regulatory standards that promote secure and prosperous global markets for cryptocurrencies. Taiwan’s cryptocurrency industry has demonstrated its commitment to growth and progress by embracing self-regulation through the establishment of industry associations. This shared awareness among participants about regulatory compliance, consumer welfare, and the holistic integration of digital currencies in the financial landscape will guide Taiwan’s crypto future. The association will play a crucial role in promoting transparency, security, and global benchmarks, ensuring sustainable growth in the sector.