Taiwan’s FSC to Implement Fresh Regulations for Crypto Listing on Exchanges in January 2025

Taiwan's financial regulator, the Financial Supervisory Commission (FSC), plans to implement new rules for crypto listing.

The regulations demand anti-money laundering (AML) compliance registration from crypto service providers from January 2025. The financial regulator will also enforce additional oversight for the listing and delisting of digital assets.

Taiwan Financial Regulator To Implement New Rules On VASPs

Taiwan's FSC has disclosed its plans to implement fresh regulatory standards for crypto service providers next year. The regulations will cover some areas of crypto assets, including asset listing and delisting, record keeping, and others.

The director of the securities firms division of the FSC, His-Ho Huang, revealed this information during the FinTechOn conference in Taipei.

According to the rules, the FSC demands that all virtual assets service providers comply with AML registration. The new rules will become effective from January 2025.

Also, the regulator noted that non-compliance with the rules would result in criminal penalties, including up to two years of imprisonment.

Currently, Taiwan's regulations demand compliance with anti-money laundering (AML) laws from VASPs based on the FSC's standards enacted in July 2021. However, the new rules will substitute the present ones after implementation.

The FSC assumed the primary regulatory oversight of the digital asset sector in the country in March 2023. In October, it disclosed the current rules for the VASPs.

In his Monday statement, Director Huang explained the new rules and the possible regulatory approaches they will follow. He noted that the FSC will leverage the new rules to tighten its regulatory oversight on certain aspects of crypto assets.

These include information security, fiat currency custody, record keeping, and customer-compliant handling processes.

Again, the rules require crypto trading platforms and exchanges to establish clear procedures for listing and delisting crypto assets. Also, the VASPs will include measures to prevent unfair trades and detect price and volume manipulations.

Additionally, the rules will mandate crypto custodians to separate clients' funds from the trading platform's assets. They can do so by placing customers' assets in a different trust.

Moreover, asset custodians are expected to engage a Certified Public Accountant (CPA) to provide annual reports for customers' assets.

The FSC Drafts Special Law For Crypto Exchange Management Regulation

Besides the FSC's fresh rules on compliance registration, the regulator is working on a different rule.The new draft tagged Special Law for Crypto Exchange Management" aims to boost consumer protection measures and ensure transparent licensing standards.

Commenting on the new draft regulation, the FSC Chair, Jin-Lung Peng, said the regulator has made significant progress. In June 2025, the watchdog will submit the draft to the country's highest administrative organ, the Executive Yuan.

Meanwhile, the law will pass through public hearings in early 2025, allowing the public to contribute to shaping digital asset regulations.

Peng disclosed that about 26 crypto exchanges and trading platforms bagged the AML registration license, with up to 30 additional applications awaiting review.

The post Taiwan's FSC to Implement Fresh Regulations for Crypto Listing on Exchanges in January 2025 appeared first on Techreport.