Taiwan’s Financial Supervisory Commission (FSC) will become the only regulatory body tasked with overseeing the crypto space in the country. The FSC’s upcoming role includes implementing guidelines and ensuring enforcement and investor protection.
FSC To Oversee Digital Assets
According to FSC chair Huang Tien-mu, the commission will supervise Taiwan’s crypto space. Addressing the Taiwanese Parliament, known as the Legislative Yuan, recently, Huang discussed the upcoming crypto regulations in the Republic of China.
He noted that the FSC’s proposed crypto regulatory framework would include implementing rules and policy, separating investors’ funds from crypto companies’ assets, and ensuring consumer protection. According to the official, the commission is empowered by the country’s highest administrative body, the Executive Yuan, to manage payments and transactions in the digital asset market.
However, the FSC’s chair noted that other industry-based assets like non-fungible tokens (NFTs) might also fall under the commission’s purview. The official stressed that the FSC might have to start with a self-regulation drive for the crypto sector in Taiwan.
Huang added that the commission must follow the directives issued by the Executive Yuan. Per a report by Taiwan’s Central News Agency, lawmakers in the Island nation are expected to develop and implement a unique crypto regulatory framework by the end of this month.
Moreover, the current plan is to move the supervision of NFTs to the Ministry of Digital Affairs. Meanwhile, the latest development comes amid Taiwan’s frosty relationship with China over the Chinese government’s view of the Island nation as still a part of mainland China despite their breakaway.
The Chinese government has reportedly vowed to bring Taiwan under its control, an announcement that hasn’t gone down well with Taiwanese authorities.
China Eyes New National Financial Regulator
According to reports, the Chinese government is reportedly considering establishing a new national financial regulator for its strategic overhaul. Accordingly, the government disclosed that it would scrap the country’s current banking regulator, the China Banking and Insurance Regulator Commission (CBRIC).
Moreover, the core responsibilities of the CBRIC will be moved to the new agency, including some specific functions of the central bank and securities watchdog. The legislature has already voted for the proposed plan, with the result yet to be published at the time of writing.
The new financial watchdog will likely strengthen institutional collaboration when established. The latest development follows the clamor for reform for party and state institutions in the country by president Xi Jinping.
Furthermore, the proposed reform will include an agency for collecting and sharing data. This reform will partly displace the responsibility of the Office of the Central Cyberspace Affairs Commission.
However, the government did not mention where the regulation for the crypto industry would fall, but observers believed that the government would address this issue. Meanwhile, the People’s Bank of China (PBoC) has called on the government to reconsider removing the ban on all crypto assets.
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