Taiwan Submits Cryptocurrency Regulations

Taiwan Submits Cryptocurrency Regulations. Minister of Justice of Taiwan Qiu Taisan required the submission  cryptocurrency regulations by November in order to prevent money laundering.

Qiu Taisan said that the Ministry of the Interior, the Central Bank, the Bureau of Investigation and other organizations will participate in defining how to regulate bitcoin. The Central News Agency reported that Qiu Taisan was interviewed during a conference on financial industry money laundering conducted by the Taiwan Financial Services Coalition.

Government and its Crypto Regulation Studies

On April 10 the Legal Department of the Government invited two national virtual currency operators to learn about transactions with virtual currency. The Department will be aware of the “control mechanisms” before the Asia-Pacific Anti-Money Laundering Organization in Taiwan at the end of November.

Chairman of the Financial Supervision and Management Commission Gu Lixiong also said that monitoring of bitcoin and other virtual currencies is concentrated mainly on money laundering prevention. So that to prevent bitcoin from turning into a tool for money laundering, the commission asked banks to list the account of the bitcoin market as a “high-risk account.”

What is the Outlook for Regulations?

Finally in October, Wellington Koo, then chairman of the Taiwan Financial Supervisory Commission, said at a parliament and the cabinet joint session that Taiwan would not do the same as China and South Korea like putting ban on crypto-related activities. Instead, the head of the financial regulator of Taiwan promised to take a more friendly position to maintain the growth, formation and adoption of both cryptocurrencies and blockchain technologies in the country.

The new head of the Taiwan Central Bank, Yang Chin-long, expressed “uncertainty” about the function of cryptocurrency as a payment instrument. He was asked about this after a number of central bank partners around the world studied the state of the cryptocurrency on the basis of the blockchain.

Yang Chin-long argued that cryptocurrencies do not work as payments, referring to their speculative nature.