n Oct, 25, Taiwanese legislators introduced the wirtualasset wanadementunicameral parliament, the Legislative Yuan. The bill aims to provide "better protection" forcustomers and "properly supervise" the industry.

The 30-page bill appears moderate in its demands for the industry. lt suggests some common-sense obligations for virtual asset service providers (VASPs), such as separating customerfunds from the company's reserve funds, establishing an internal control and audit system, andjoining the local trade association.

However, at this point, it doesn't require stablecoin issuers to hold a 1:1 ratio of reserve funds.and it doesn't mention algorithmic stablecoins. As to marketing activities, the rules foradvertising are to be determined by the "competent authority.

The bill suggests fines for VASPs operating without a license - no less than 2 millionTaiwanese dollars (around 560.000) and no more than 20 milion TWD (600.000) Thecompanies already operating in the Taiwan market will have six months to obtain a license afterthe bill comes into force.

In September 2023, Taiwan's Financial Supervisory Commission (FSC) also released industryguidelines for VASPs. The FSC prohibits foreign VASPs from providing their services in Taiwanwithout obtaining the necessary approvals from the regulator

The rules were created as major cryptocurrency exchanges in Taiwan have formed a selfregulatory association. On Sept. 26, local exchanges such as MaiCoin, BitstreetX, Hoya BitBitgin, Rybit, Xrex and Shangbito joined forces to create the Taiwan Virtual Asset Platform andTransaction Business Association. They aim to support the crypto industry and work withregulators.

Source: CoinTelegraph)