Draft Guiding Principles of the Taiwan Financial Supervisory Commission: Businesses can issue tokens; exchanges need to have a review mechanism for listing and listing tokens

Odaily Planet Daily News According to Lianxin News, based on multiple sources, the content of the draft guiding principles of the Taiwan Financial Supervisory Commission (non-finalized version) shows that there are 13 principles and related supplementary provisions. The guiding principles to be announced in September of this year (2023) will allow local industry players to have a clearer understanding of legal behavior and penalties: If overseas companies fail to comply with the regulations in Taiwan, they will not be allowed to advertise and solicit business. Businesses regulated by the guiding principles can issue virtual assets, but they must have a white paper with sufficient information disclosure, such as: issuer information, issuance quantity, subscription conditions, etc., and it is even necessary to disclose whether the adopted consensus mechanism will have a significant impact on the climate. However, the industry cannot issue stable coins; The FSC believes that if the stable currency becomes a universal payment tool, it may affect the national sovereign currency; The Taiwan Financial Supervisory Commission refers to the "EU Encrypted Assets Market Supervision Law" and "Banks' Self-discipline Regulations for Wealth Management and Financial Product Sales Business", requiring exchanges to set up review standard procedures for listing and listing currency, and record the operation process; The Financial Supervisory Commission requires the industry to do a good job of separating the custody of "company assets" and "user assets"; When dealing with banks, business operators should cooperate with banks in implementing relevant requirements on money laundering prevention work such as confirmation of customer identities and transaction monitoring; The FSC guidelines require that exchange operators should specify the ratio of hot and cold wallet positions, as well as related policies and procedures, to protect user assets' The Financial Supervisory Commission expressly stated that it is not allowed to illegally operate virtual asset derivative financial product trading business, or virtual asset business with securities nature, otherwise it will be sentenced to a fixed-term imprisonment of less than 7 years and a fine of less than three million NT dollars.