Gairika Mitra
Taiwan’s Financial Supervisory Commission (FSC) unveils plans to stimulate financial innovation in the crypto space, revealing its intentions to launch thematic business trials and encourage financial institutions to apply for virtual asset custody services.
In a recent announcement, the FSC revealed that three banks have shown interest, with the launch anticipated in the first quarter of next year. The first pilot application for virtual asset custody services has also emerged.
According to Hu Zehua, director of the Comprehensive Planning Division at the FSC, the FSC plans to publicly explain its regulatory framework surrounding virtual assets, soliciting feedback from outside experts and stakeholders before officially accepting applications.
The agency anticipates receiving external opinions on the matter within the next 15 days, with subsequent revisions made based on those suggestions.”
The FSC is also taking a cautious approach to regulating virtual assets, prioritizing security and compliance. The agency expects financial institutions applying for trial runs of virtual asset custody business to specify the type of virtual assets they intend to keep, such as Bitcoin or Dogecoin.”
In addition to securing investors’ trust in virtual assets, the FSC intends to promote financial innovation by encouraging financial institutions to pilot thematic businesses. The agency expects to publicly announce an official date for accepting applications from banks interested in conducting virtual asset custody trials within the next two months.”
Taiwan’s Strategic Shift: Embracing Self-Regulation and Innovation in the Blockchain Sector
Earlier, the World Blockchain Summit noted that the Taiwanese government has opted for a proactive approach by encouraging self-regulation within the local blockchain industry. This strategy aims to streamline future government oversight, making market regulation more efficient.
For years, Taiwan faced criticism from the international tech sector due to its lack of regulations in the FinTech space. Unlike Japan, which acknowledged its shortcomings in FinTech and emerging technologies, Taiwan has been working to embrace innovative, disruptive technologies.
The approval of the Financial Technology Innovations and Experiment Act marked a significant step forward for Taiwan’s financial services sector. This act allows crypto startups to operate for years without regulatory hurdles, paving the way for more formalized regulations in the future. It may also accelerate the adoption of a decentralized ledger-based regulatory framework.
Congressman Jason Hsu, a strong advocate for cryptocurrency, has met with major global players in the cryptocurrency industry, including Binance, to ensure Taiwan’s local crypto market can continue to expand rapidly with government support and approval.
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Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
