The Taiwan Financial Supervisory Commission has just unveiled its “Guiding Principles for Virtual Asset Firms.” Key points from the guidance:
➡️ Authority: The Financial Supervisory Commission takes charge of virtual asset platforms, emphasizing customer protection.
➡️ Scope: Covers domestic virtual asset platforms and trading businesses.
➡️ Virtual Asset Issuance: Issuers must disclose a white paper with key details.
➡️ Review Mechanism for Listing and Delisting of Virtual Assets: Strict standards and procedures for listing/delisting virtual assets.
➡️ Separate Custody of Assets: Customer assets must be kept separately from the enterprise’s own assets.
➡️ Transaction Fairness and Transparency: Establishes rules for transparent virtual asset transactions.
➡️ Money Laundering Prevention and Control: Compliance with money laundering prevention laws.
➡️ Customer Protection Regulations: Contracts must be fair and transparent, and customers informed of risks.
➡️ Management Mechanism of Operating Systems, Information Security, and Wallets: Ensures robust operation, security, and wallet management.
➡️ Disclosures / Announcements: Comprehensive disclosure of key information.
➡️ Internal Control and Organisational Review: Emphasis on independent, objective operations and regulatory inspections.
➡️ Business Prohibitions: Strict prohibition on certain virtual asset operations.
➡️ Self-Regulatory Organizations: Encourages the establishment of trade associations and adherence to these principles.
🔶 Supplementary Provisions:
➡️ Natural Persons and Overseas Virtual Asset Platform Operators
– Natural persons engaging in specified businesses must provide a statement of compliance with money laundering prevention laws equivalent to a legal entity.
– OVERSEAS #VASPS MUST NOT advertise or provide services to Chinese citizens without proper registration and compliance with money laundering prevention laws.
➡️ #TravelRule
– Domestic firms handling virtual asset transfers must securely obtain relevant information of both the sender and recipient for large transactions.
➡️ Insurance
– Insurance companies will be responsible for client asset losses due to business interruption, system failure, information security breaches, or custody of customer virtual assets.
– Compensation liability will be included in insurance coverage, enhancing customer rights and interests protection.
Translated Article
[Disclaimer: This is an unofficial, automated translation from the original and is for informational purposes only. Please refer to the official source for accurate details.]
