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Taiwan is Most Interested in NFTs, Says NFT Club Research

Taiwan is where people are the most interested in non-fungible tokens (NFTs), according to research conducted by NFT Club.

The research was conducted by using Google search data, through which NFT Club could identify countries with the most NFT-related searches.

In total, Taiwan had 9,629 NFT searches per 1000,000 people, Australia was second with 8,198 per 1000,000 people and Canada was third with 8,127 searches per 1000,000.

However, the reason behind the popularity of NFTs in these countries and regions has not been discovered.

NFTs have been gaining increasing popularity and marketplaces such as OpenSea have already featured record numbers of NFT listings and sales.

While the United States topped the chart for countries with the most number of NFT headquarters, the research stated.

The United States has a total of 91 NFT companies, Singapore is second with 24 and India is third with 11. Meanwhile, Hong Kong is eighth with 6 NFT companies.

NFT Club’s research also found that the highest-funded NFT company was located in the United States.

Forte Labs, which specialises in integrating blocking technology into games to enable a variety of features that allow for the inclusion of tokens and NFT trading, had raised $910 million in funding.

French company Sorare, which deals with a new way to play fantasy football using blockchain technology, was second with $747 million in funding raised. In third was Canadian company Dapper Labs – a company that develops NFT games and collections including NBA Top Shot and CryptoKitties – with $627 million funding raised.

Taiwan Moves to Ban the use of Credit Cards to Acquire Cryptocurrency

Taiwan through its Financial Supervisory Commission (FSC) has moved to ban the use of credit cards in purchasing cryptocurrencies.

As per reports from local media, the FSC in a letter to the local banking association earlier in the month instructed credit card operators to sever ties with crypto firms.

According to the FSC, credit cards are payment tools for consumer goods and services and as such should not be used as payment options for financing speculative trade. In addition to that, credit cards cannot be used for futures and options trading, online gambling, and other related transactions.

The regulators also gave credit card companies three months to comply with the new directive. After the expiration of their period, the regulator’s audit team will monitor the level of compliance. After the blanket ban on crypto-related activities in China, Taiwan witnessed a boom in the sector with the bigger interest in NFTs. This had many in the sector touting it as the next crypto hub but this has since seamed down.

The FSC has also been very vocal about the nascent sector since after the Chinese ban in 2021. The regulator has made several press releases stressing the volatility of digital assets and the associated risks involved.

Although the crypto space in Taiwan is still not fully regulated. The East Asian country also introduced rules on anti-money laundering (AML) schemes in 2021. With the Terra-Luna collapse and the market downturn that has caused the loss of billions of funds in the industry, regulators around the world have tightened crypto rules.

Many countries have heavily regulated the sector with licensing mandates while others have outrightly banned crypto payments.

Taiwan works on it’s CBDC

In Spite of its stiff position regarding digital assets, Taiwan is working on its own Central Bank Digital Currency (CBDC). Preparation for the launch of the pilot is in top gear with the completion of the trial for its prototype.

Taiwan’s Apex bank has been working on cases of CBDC for two years and has a few hurdles to overcome before it becomes operational.

Upon launching of the digital currency, its citizens will be able to complete payment transactions without a credit card.

Taiwan FSC to regulate crypto

According to the president of the authority, the Financial Supervisory Commission of Taiwan (FSC) will take over as the principal regulator of cryptocurrencies throughout the island nation.

According to the local United Daily News, the head of the Financial Supervisory Commission (FSC), Huang Tien-mu, made the announcement that the regulator would acquire supervisory responsibility over the cryptocurrency market in Taiwan.

On March 20, Huang gave a speech about the regulation of cryptocurrencies in the Republic of China before the Legislative Yuan in Taiwan (ROC). He said that the new crypto regulatory framework that will be implemented by the FSC would contain key laws and policies, such as the partitioning of consumer assets from corporate money and the implementation of investor protection procedures.

According to the source, the nation’s top administrative authority, known as the Executive Yuan, has given the Financial Supervisory Commission (FSC) the mandate to monitor payments and transactions in the cryptocurrency market at this time. Huang emphasized that other industry-related assets, such as nonfungible tokens (NFTs), may not come under the regulation of the Financial Stability Commission.

Huang also said that the Financial Supervisory Commission (FSC) will first focus a lot of emphasis on the concepts of self-regulation in the cryptocurrency market in Taiwan. The official continued by saying that the authority will act in accordance with the directives provided by the Executive Yuan.

According to a report that was published by Taiwan’s Central News Agency, Taiwanese legislators anticipate developing and approving an appropriate crypto legal framework by the end of March or at the earliest by the month of April. According to reports, the goal of the present preliminary plan is to place the oversight of the regulation of NFTs within the authority of the Ministry of Digital Affairs.

The announcement comes at a time when Taiwan is experiencing persistent tensions with China. The Chinese government views Taiwan as a renegade province, and it has pledged to bring Taiwan under its rule. China, which has emerged as a significant anti-crypto nation, will implement a total ban on crypto in 2021, in contrast to other jurisdictions in the Asia-Pacific area, such as Hong Kong or Singapore, which are crypto-friendly.

Taiwan's Financial Supervisory Commission Drafts New Crypto Regulations

Taiwan’s Financial Supervisory Commission (FSC) has drafted a set of guidelines to regulate virtual asset platforms, according to information obtained by Abmedia News. The draft, which is not yet finalized, consists of thirteen principles and related appendices. The guidelines are expected to be announced in September 2023.

Key Principles

Regulation from an Anti-Money Laundering Perspective: The FSC will supervise businesses from an existing anti-money laundering (AML) perspective, focusing on customer protection measures such as asset custody methods, transparency in transaction information, external expert guidance, and internal control management.

Issuance of Tokens, but Not Stablecoins: Businesses can issue virtual assets, but not stablecoins. The FSC believes that stablecoins could affect national sovereign currency and monetary policy.

Exchange Listing and Delisting Review Mechanism: Exchanges must establish review standards for listing and delisting virtual assets.

Asset Segregation: The FSC requires businesses to separate company assets from user assets, including both fiat and virtual currencies.

Fair and Transparent Trading: The FSC demands clear trading rules to ensure market fairness and avoid manipulation and conflicts of interest.

Banking Compliance: Businesses must comply with banks in executing customer identity verification and transaction monitoring for AML purposes.

Advertising and Disclosure: Businesses must avoid misleading advertising and must fully disclose product information.

Cold and Hot Wallet Proportions and Liability Insurance: Exchanges must define cold and hot wallet proportions and insure against user losses within their responsibility scope.

Illegal Contract Trading Punishable by Imprisonment: Illegal operation of virtual asset derivative financial products or securities-like virtual assets is punishable by up to seven years imprisonment and a fine of up to 3 million New Taiwan Dollars.

Virtual Asset Industry Association: The FSC encourages businesses to form a “Virtual Asset” industry association and establish self-regulatory rules.

Restrictions on Overseas Platforms Advertising in Taiwan: Overseas platforms may not advertise or engage in solicitation activities in Taiwan if they are not in compliance with local regulations.

Implementation of Travel Rule: Taiwan’s FSC is considering the implementation of the Travel Rule, requiring recording and reporting of information related to certain fund transfers.

Conclusion

The draft guidelines show that Taiwan’s government has researched multi-national regulatory norms and is encouraging industry self-regulation. The approach, which relies on AML principles and industry self-regulation, is seen as more flexible for industry development.

However, the lack of specific penalties for non-compliance and limited enforcement capabilities may result in limited consumer protection.

Vitalik Buterin Holds Taiwan Employment Gold Card

During a discussion in which Taiwan’s Digital Minister Audrey Tang, Matters’ co-founder and current CEO Zhang Jieping, and Ethereum’s co-founder Vitalik Buterin participated, an unexpected finding was made.

When Minister Tang was discussing Taiwan’s policy on the distribution of 6,000 yuan, he made a slip of the tongue that revealed Vitalik Buterin’s status as a bearer of the Taiwan Employment Gold Card. This information was made public by mistake.

The Taiwan Employment Gold Card is a one-of-a-kind program that was developed to persuade talented individuals from other nations to come to Taiwan and contribute to the economy of the country. This program was meant to attract workers who had degrees or certifications in a certain field.

The Card is a comprehensive document that integrates four essential permits: a work permit, a residence visa, an Alien Resident Certificate (ARC), and a re-entry permit. This integration allows the cardholder to legally work, live, prove their residency status, and travel in and out of Taiwan without the need for separate documents.

Cardholders can reside in Taiwan for a period exceeding 180 days. The card itself is valid for a duration ranging from 1 to 3 years. One of the significant advantages of this card is the flexibility it offers in terms of travel. During its validity period, the holder can exit and re-enter Taiwan an unlimited number of times without any restrictions.

This integrated approach simplifies the administrative process for professionals, making it more convenient for them to work and live in Taiwan. It reflects Taiwan’s commitment to attracting and retaining global talent by offering a streamlined process.

Taiwan Regulates Crypto Exchanges, Bans Unregistered Foreign Operators

Key Takeaways

Taiwan’s Financial Supervisory Commission (FSC) releases new guidelines for Virtual Asset Service Providers (VASPs).
Foreign VASPs are prohibited from operating in Taiwan without proper registration.
The guidelines were released on September 26, 2023, and aim to improve investor protection.

Regulatory Framework

Taiwan’s Financial Supervisory Commission (FSC) has taken steps to regulate the cryptocurrency market by releasing guidelines for Virtual Asset Service Providers (VASPs) on September 26, 2023. The guidelines cover a range of issues, including the separation of exchange treasury assets from customer assets, mechanisms for listing and delisting virtual assets, and internal control systems.

Foreign VASPs Face Restrictions

The FSC explicitly stated that foreign VASPs are not allowed to provide services in Taiwan unless they have been registered in accordance with Taiwanese law. This move aims to ensure that all VASPs operating in the country adhere to local regulations and compliance standards.

Self-Regulation Encouraged

The FSC also encourages self-regulation within the cryptocurrency industry. VASP associations are expected to formulate self-regulatory norms based on the contents of the guiding principles. This comes as local exchanges like Maicoin, BitstreetX, Hoya Bit, Bitgin, Rybit, Xrex, and Shangbito have formed the Taiwan Virtual Asset Platform and Transaction Business Association.

Global Exchanges in Taiwan

Major global crypto trading firms like Binance have also been serving customers in Taiwan. Binance reportedly applied for registration in Taiwan under the Money Laundering Control Act. Other exchanges like Kraken and Bybit have been offering services to clients living in Taiwan.

Investor Protection

The FSC has emphasized the need for investor protection, especially in light of recent incidents involving foreign crypto exchanges. The guidelines are part of a broader effort to mitigate risks associated with the highly speculative nature of virtual assets.

Taiwan's Major Crypto Exchanges Form Association to Align with Upcoming Regulations

Key Takeaways

Taiwan’s leading crypto exchanges form an industry association ahead of new regulations.
The association aims to facilitate dialogue with regulators and integrate the crypto industry.
Nine exchanges are currently part of the preparatory group for the association.

As Taiwan’s Financial Supervisory Commission (FSC) prepares to unveil its “Guiding Principles for the Management of Virtual Asset Service Providers (VASPs)” in September, the country’s major crypto exchanges have taken proactive steps. They have formed a preparatory group, known as the Taiwan VASP Association Preparatory Committee, in early September. The initiative is expected to become legally effective in October, following the government’s release of its crypto framework.

Unified Industry Efforts

The preparatory group consists of nine crypto exchanges, including the first three founders: MaiCoin Group, BitoGroup, and Ace Exchange. Other members are BitstreetX, Hoya Bit, Bitgin, Rybit, Xrex, and Shangbito. “The association is a family and a beacon. It guides us in the direction, collects information, sets standards, builds consensus, speaks on our behalf, and leads us to further progress,” said Wang Chenhuan, President of Ace Exchange.

Regulatory Alignment

The association aims to align with the upcoming regulations by the FSC. “We have a responsibility to lead industry partners in perfecting infrastructure and regulations,” said Zheng Guangtai, Founder and CEO of BitoGroup. He added that BitoGroup has accumulated rich experience in areas like cybersecurity, internal control, anti-money laundering, and counter-terrorism financing over the past decade.

Broadening the Ecosystem

The association is not limited to exchanges and aims to include other key players like traditional banks, fintech firms, accountants, and insurance companies. “The most important work at this stage is to play the role of internal communication. Only through unity and cooperation can we build a robust industry chain,” said Xiao Huizong, Co-founder and Chief Revenue Officer of Xrex.

Transparency and Future Plans

The preparatory group holds weekly meetings every Tuesday afternoon, and the minutes are publicly available on GitBook to ensure transparency. They plan to submit their application to the Ministry of the Interior by mid-October, aiming for the formal establishment of the Taiwan VASP Association by the end of the year.

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Taiwan's Financial Supervisory Commission in Exploratory Phase for Crypto ETFs

An investigation into the possibility of establishing bitcoin exchange-traded funds (ETFs) is now being conducted by Taiwan’s Financial Supervisory Commission (FSC), which is in the exploratory phase. The use of digital assets inside regulated financial markets is becoming more popular throughout the world, and this move is in line with that trend.

In other areas, like as the United States, Canada, and Australia, where such products are already trading on local exchanges, the Financial Stability Commission (FSC) is keeping an eye on the growth of cryptocurrency exchange-traded funds (ETFs). The Financial Stability Council (FSC) has acknowledged the severe volatility that is inherent with cryptocurrencies, which is the catalyst for this cautious approach. Before taking into consideration any kind of regulation relaxation, the commission intends to finish doing extensive study and analysis on international cryptocurrency futures products and exchange-traded funds (ETFs).

While highlighting the need of self-regulation and standards in the early stages, the Financial Stability Council (FSC) has signalled that there would be a progressive liberalisation of restrictions for trading digital assets. This strategy is consistent with Taiwan’s long-standing policy of exercising caution with respect to investment products that are prone to volatility and speculation. The Financial Services Commission (FSC) has recently produced guidelines for virtual asset service providers and has been participating in the process of drafting legislation with the intention of establishing a more organised framework for the digital asset business in Taiwan. Such developments are examples of recent regulatory advancements.

A growing number of exchanges all around the globe are selling cryptocurrency futures products and exchange-traded funds (ETFs), which indicates that the cryptocurrency market is increasing on a global scale. The Federal Securities Commission acknowledges the possible influence of worldwide trends such as the evaluation of the Bitcoin spot ETF by the United States Securities and Exchange Commission (SEC) and the projected decrease in Bitcoin production in April 2023. These global movements are contributing reasons to the increase in the value of Bitcoin this year.

Domestic investment banks are shown a strong interest in offering comparable financial products at a time when Taiwan is considering entering the market for exchange-traded funds (ETFs) that deal in cryptocurrencies. The Federal Securities Commission is also investigating the idea of “cryptocurrency concept ETFs,” which would concentrate on investments in businesses that are associated with cryptocurrency software and hardware rather than directly relating to changes in the price of cryptocurrencies that are being traded.

The cautious but forward-looking posture that Taiwan has taken towards exchange-traded funds (ETFs) for cryptocurrencies indicates a balance between the need for a solid regulatory framework and the global financial changes that are occurring. The exploratory phase of the Financial Stability Council (FSC) is a crucial step towards possibly increasing Taiwan’s financial market services while simultaneously ensuring financial stability and protecting investors.

Taiwanese Authorities Caution Against Crypto Betting for 2024 Presidential Election

In light of the fact that Taiwan is getting ready to hold its presidential election on January 13, 2024, a crucial advice has been given to the people of Taiwan about betting on cryptocurrencies. A thorough investigation into the use of cryptocurrency platforms for betting on the result of the presidential election has been begun by the authorities in Taiwan. This inquiry has brought to light the ethical and legal considerations that are associated with such behaviors.

There is a significant amount of anxiety among the authorities in Taiwan over the use of bitcoin betting websites. In the midst of the enthusiasm surrounding the impending election, this notice is being sent with the intention of discouraging locals from participating in gambling activities that might possibly be unlawful. This warning is being issued as a result of events in which Taiwanese individuals have purportedly utilized such platforms, which has led to a more comprehensive examination into these activities.

A total of seventeen people have been put into custody as a direct consequence of the serious action taken by the Taiwanese authorities against internet betting on the presidential election. Over five thousand five hundred dollars worth of USD Coin, a cryptocurrency that is tied to the United States Dollar, was taken away from people who were jailed as a result of the raid. This action demonstrates the government’s commitment to combatting unlawful internet gambling, particularly in situations where it crosses with the electoral process.

The utilization of Polymarket, which is a decentralized betting platform, is at the heart of this matter of contention. It has been determined that Taiwanese residents consistently choose it as their preferred option when it comes to putting wagers on the presidential election. The absence of a central authority or control mechanism that these platforms possess presents regulators with a unique set of issues due to the decentralized structure of these platforms.

The caution against the use of cryptocurrency betting platforms serves as a reminder of the legal limitations and ethical issues that are involved in activities of this kind. This warning comes as the presidential election in Taiwan begins to draw closer. A increasing worldwide trend of analyzing the junction between cryptocurrencies and conventional industries, including as politics and gaming, is reflected in the aggressive position taken by the government of Taiwan.

Taiwan's Financial Regulator Cautions Investors Amidst Crypto Volatility

The Taiwan Financial Supervisory Commission (FSC) has issued a public statement urging caution among investors regarding the trading of virtual assets, including cryptocurrencies like Bitcoin, in light of recent significant price fluctuations that have led to substantial losses for some traders.

In the wake of tumultuous market conditions, the FSC emphasizes that virtual assets are highly speculative digital “virtual commodities” and not recognized as currency. They lack inherent value, and their trading prices are not subject to regulatory limits, resulting in potential steep rises and falls. The FSC advises citizens to thoroughly understand the operational models of these assets and to carefully assess the risks before engaging in transactions.

The FSC also warns about the risks associated with using overseas virtual asset trading platforms. These platforms are not established under Taiwan’s regulations, may not be regulated by foreign authorities, and the transparency of trading information can be questionable. The FSC recommends that the public exercise due diligence when considering such investments.

For those seeking further information or with specific inquiries, the FSC has provided contact details for its Securities and Futures Bureau’s Securities Firms Division.

The rise of cryptocurrencies and digital assets has been one of the most transformative developments in the financial sector in recent years, drawing attention from regulators worldwide. With the FSC’s latest advisory, Taiwan joins a list of countries that are actively working to educate their citizens on the potential risks associated with the volatile cryptocurrency market.

The crypto market’s rapid growth and the emergence of various digital assets have underscored the need for clear regulatory frameworks and investor education programs to ensure that participants are well-informed of the risks and the nature of their investments.

While regulators like the FSC aim to protect consumers, they also face the challenge of fostering innovation and not stifling the growth of new financial technologies. The balance between regulation and innovation remains a central theme in the ongoing dialogue between financial authorities, investors, and industry participants.