Taiwan: Crypto Regulatory Framework Welcomed After FTX-Induced Turmoil

Although not a thriving financial hub like its neighboring states like Hong Kong and Singapore, Taiwan is poised to drive the global tech industry to the next level. It hosts the world’s most valuable semiconductor company, dubbed the Taiwan Semiconductor Manufacturing Company Limited (TSMC), which is most popularly known for its customers, including Apple. The company is directly and indirectly involved in the future success of the crypto industry through mining and the provision of quality hardware products. 

A major way the country is moving toward its goal of financial freedom is by adopting the blockchain and cryptocurrency industry. However, the implosion of FTX and Alameda Research late last year was a significant impediment to cryptocurrency adoption in Taiwan. According to a Taiwanese law firm, Enlighten Law Group, about 950 people in the country had crypto assets worth approximately $150 million stored in FTX when it collapsed.

Taiwanese Welcomes Crypto Regulatory Framework 

Amid the global banking crisis and high inflation, most Taiwanese prefer depositing cash flow into crypto-related staking products. As such, the government has stepped in to regulate the cryptocurrency industry to protect its people from possible future exploitation. 

According to Huang Tien-mu, the chairman of the Financial Supervisory Commission, during a parliamentary hearing about global banking stability, the country will soon have a special crypto legislation overseen by the FSC.

Lack Of Relevant Experience

Some Taiwanese parliamentarians had called for a newly-established Ministry of Digital Affairs (MODA) to be the chief crypto regulator. However, others have said that the Ministry is relatively inexperienced in regulation compared to the FSC.

“Militaries use guns and bullets. Let’s say they started using laser guns. Would you expect that to still fall under the defense ministry or a new department of directed energy weapons?” Alex Liu, CEO of Maicoin, noted.