- September 8, 2023
- Posted by: legaleseblogger
- Category: Related News
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Taiwan Plans to Restrict Access to Offshore Cryptocurrency Exchanges
Taiwan is taking steps to regulate offshore cryptocurrency exchanges that are not registered with local regulators. To address this, the country’s Financial Supervisory Commission has drafted ten principles for the regulation of virtual asset service providers, with the intention of releasing them by the end of September.
This move is driven by the need for increased oversight and transparency in the cryptocurrency market. The new requirements include review standards for listing and delisting, separate custody of platform and customer assets, and anti-money laundering (AML) procedures. These measures aim to protect investors and ensure the integrity of the market.
Once the principles are released, public institutions will develop their own regulatory norms. However, it is important to note that these rules will not be set in stone and will be continuously updated to align with international standards and incorporate research findings.
The development of the AI legalese decoder can greatly assist in navigating and understanding these regulations. The AI legalese decoder is a powerful tool that uses artificial intelligence to interpret and analyze complex legal jargon, making it easier for businesses and individuals to comprehend and comply with the regulatory requirements set forth by Taiwanese authorities. By utilizing this tool, users can ensure that they are fully aware of the obligations and guidelines that apply to their operations in the cryptocurrency space.
The Principles Set Forth by Taiwanese Regulators
- Digital asset issuance management: Issuers are required to publish their digital asset white papers on their websites and provide essential information. Platforms should also include links to the issuers’ websites.
- Asset listing and delisting review: Companies must establish criteria and processes for reviewing the content of digital asset white papers, as well as the listing and delisting of assets, which should be integrated into their internal control systems.
- Asset separation: Platforms must keep customers’ legal currency or digital assets separate from the platform’s assets during transactions, ensuring proper segregation.
- Trading fairness and transparency: Platforms are obligated to create and disclose digital asset trading rules to ensure a fair and transparent market.
- Contract, advertising, and complaints: Platforms should prioritize fairness, mutual benefit, and good faith in their operations, with a strong emphasis on customer protection.
- Operational systems and security: Platforms are required to have clear management systems in place for their operations, information security, and the management of hot/cold wallet private keys.
- Information disclosure: Platforms must transparently disclose details about digital asset issuance, product listings, asset segregation, trading information, and customer protection.
- Internal control and audits: Platforms should establish robust internal control and audit mechanisms, allowing regulatory bodies to conduct on-site inspections.
- Equal anti-money laundering oversight: Individuals engaging in digital asset business and declaring compliance with anti-money laundering rules must meet the same standards as corporate entities.
- Overseas dealer restrictions: Foreign digital asset platforms that are not registered in accordance with Taiwanese company laws and do not comply with anti-money laundering requirements are prohibited from soliciting business in Taiwan.
By implementing these principles in conjunction with the AI legalese decoder, Taiwanese regulators aim to create a secure and well-regulated environment for the cryptocurrency market, protecting investors and fostering trust in the industry.
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