Taiwan’s Financial Supervisory Commission (FSC) will become the main regulator of cryptocurrencies in the island country, according to the head of the authority.
FSC Chairman Huang Tien-mu has announced that the regulator will assume oversight authority over the crypto industry in Taiwan, according to local news agency United Daily News. reported.
Huang addressed Taiwan’s parliament, the Legislative Yuan, on March 20 regarding cryptocurrency regulation in the Republic of China (ROC). He pointed out that the upcoming FSC crypto regulatory framework will include major rules and policies, including the separation of client assets from company funds and investor protection practices.
The official clarified that the FSC is currently tasked by the highest administrative body in the country – the Executive Yuan – to oversee payments and transactions in the crypto market. Huang pointed out that other types of industry-related assets, such as non-fungible tokens, or NFTs, may not fall under FSC oversight.
Huang also noted that the FSC will initially pay close attention to self-regulatory principles in Taiwan’s cryptocurrency industry. The official added that the authority will follow the instructions of the Executive Yuan.
Related: China announces plans for new national financial regulator
According to a report by Taiwan’s Central News Agency, Taiwan lawmakers expect develop and approve a relevant crypto regulatory framework by the end of March or April at the earliest. The current preliminary plan would aim to place the regulation of NFTs under the supervision of the Ministry of Digital Affairs.
The news comes as Taiwan faces ongoing tensions with China, with the Chinese government viewing Taiwan as a breakaway province, which it has pledged to bring under its control. Unlike some crypto-friendly jurisdictions in the Asia-Pacific region, such as Hong Kong or Singapore, China has emerged as a major anti-crypto country, imposing a blanket ban on crypto in 2021.