SNEAK PEEK 

• FSC is set to become the regulator for digital assets in Taiwan’s crypto industry.
• Industry players welcome the FSC’s nomination as Taiwan’s virtual currency regulator.
• FSC declares that it will not oversee Non-Fungible Tokens.

Recent reports allege that Taiwan’s cryptocurrency industry is poised for significant development as the Financial Supervisory Commission (FSC) is set to become the regulator for the digital asset space in the country.

Huang Tien-mu, Chairperson of the FSC of the Republic of China, confirmed this in a hearing on global banking stability in Taiwan’s parliament. On the same accord, Bloomberg had earlier reported on the expected announcement, citing sources in the legislature.

With the crypto space gaining momentum in recent years, Taiwan’s interest in regulating it signals a significant step toward ensuring investor protection and market stability.

Further, industry players have welcomed the FSC’s appointment as the regulator for Taiwan’s cryptocurrency industry. Wayne Huang, CEO and co-founder of XREX, a platform facilitating blockchain-based cross-border payments and settlements, expressed his approval, emphasizing the importance of proper regulation for the industry’s growth.

In addition, Huang believes that the FSC’s oversight will provide businesses operating in the sector with clarity and certainty.

However, the FSC of Taiwan has announced that it will not regulate non-fungible tokens (NFTs). According to local media reports, Huang Tien-Mu stated that NFTs are still emerging as an asset class, so it is too early to regulate them. Huang further added that the FSC will continue to monitor the development of NFTs and may consider regulation in the future if necessary.

On the other hand, Taiwan’s financial industry is regulated by two separate entities, the Central Bank of the Republic of China and the Financial Supervisory Commission (FSC). While the Central Bank oversees matters related to monetary policy and foreign exchange regulations, the FSC has a much broader remit. The FSC regulates everything from banking to securities and futures and enforces anti-money laundering laws.