A consortium of 24 cryptocurrency companies in Taiwan has formed the Taiwan Virtual Asset Service Provider (VASP) Association to develop self-regulatory standards for the digital asset industry. BitoPro founder and CEO Titan Cheng has been appointed chair, and Winston Hsiao, chief revenue officer of XREX, will be vice chair. The group aims to promote robust regulations that foster global growth of blockchain finance and combat fraud and criminal activities in collaboration with the government and law enforcement agencies.
XREX, as a member of the association, plans to contribute technology, industry knowledge, and infrastructure to establish a joint defense platform and design international transfer rules aligned with Taiwan’s requirements. This includes developing currency flow scanning and tracking technology to combat money laundering and fraud patterns in Taiwan. The formation of the VASP association follows a proposal by Taiwan’s Justice Ministry to amend Anti-Money Laundering regulations for virtual asset service providers, with potential consequences of imprisonment or fines for noncompliant entities. The Financial Supervisory Commission (FSC) plans to introduce new digital asset regulations in September to ensure compliance, standardization, industry development, safety, transparency, stability, and consumer rights protection.
Taiwan is set to impose restrictions on offshore cryptocurrency exchanges operating within its jurisdiction unless they obtain the required registration. The FSC drafted ten guiding principles for VASPs last year to establish self-regulatory rules, expected to be officially released soon. The guidelines will focus on strengthening information disclosure, establishing review standards for virtual asset listing and delisting, and ensuring separation and custody of companies’ and customers’ assets. The FSC will strictly prohibit illegal business solicitation by foreign crypto firms and mandate foreign VASPs to register and declare compliance with anti-money laundering regulations to avoid being barred from soliciting business within Taiwan or from domestic residents.
The establishment of the Taiwan VASP Association aims to bring more cooperation and consensus to the industry, promote compliance, standardization, and healthy development, ensure safety, transparency, stability, and consumer rights protection. The association seeks to enhance the cryptocurrency industry in Taiwan by combatting fraud and criminal activities in collaboration with the government and law enforcement agencies. XREX’s involvement in providing technology, industry knowledge, and infrastructure for a joint defense platform and international transfer rules aligning with Taiwan’s requirements demonstrates commitment to improving industry standards and combating money laundering and fraud.
Taiwan’s push for crypto regulations includes imposing restrictions on offshore cryptocurrency exchanges without registration, drafting guiding principles for VASPs to establish self-regulatory rules, and planning to introduce new digital asset regulations in September. The focus is on strengthening information disclosure, reviewing virtual asset listing and delisting, and ensuring separation and custody of companies’ and customers’ assets. The Taiwan VASP Association, with leaders from the cryptocurrency industry, aims to promote robust regulations that foster global growth of blockchain finance and address fraud and criminal activities through collaboration with government and law enforcement agencies.
