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HomeLaw & PoliticsTaiwan Cryptocurrency Firms Form Association to Set Self-Regulatory Standards

Taiwan Cryptocurrency Firms Form Association to Set Self-Regulatory Standards

A group of 24 cryptocurrency companies in Taiwan, including the XREX exchange and BitoPro, have formed the Taiwan Virtual Asset Service Provider (VASP) Association.

The newly established Taiwan VASP Association aims to develop self-regulatory standards for the digital asset industry in Taiwan. This initiative includes promoting regulations that support the growth of blockchain finance globally and cooperating with government bodies to combat fraud and other criminal activities related to cryptocurrencies.

The founding of the Taiwan VASP Association was announced on June 13, alongside plans by Taiwan’s government to tighten regulations on the digital asset industry. The association and its activities are based in Taiwan, with the involvement of local crypto firms and in coordination with Taiwan’s government agencies.

Led by Titan Cheng, CEO of BitoPro, as chair, and Winston Hsiao, chief revenue officer of XREX, as vice-chair, the association will focus on enhancing industry standards and compliance with local and international regulations. It aims to create a joint defense platform for the industry, design international transfer rules that align with Taiwan’s needs (such as the Travel Rule), and develop currency flow scanning and tracking technologies to tackle money laundering and fraud. The association’s formation is a response to the Taiwanese Justice Ministry’s proposed amendments to Anti-Money Laundering (AML) regulations and the Financial Supervisory Commission’s (FSC) announcement of new digital asset regulations set for introduction in September.

This move by the cryptocurrency companies comes at a crucial time when Taiwan is seeking to tighten its grip on the digital asset market to prevent illegal activities and enhance market stability. The formation of the VASP association is seen as a proactive step by the industry to align with government efforts and ensure that the growth of the blockchain and cryptocurrency sector in Taiwan is sustainable, transparent, and secure. The initiative is expected to bring more cooperation among industry players, promote compliance and standardization, and ultimately safeguard consumer rights and the integrity of the digital finance landscape in Taiwan.

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