Key points of Taiwan's "Virtual Asset Management Bill": Virtual asset operators are subject to hierarchical management and are not allowed to operate without permission from the competent authority.

Some key points of Taiwan’s “Virtual Asset Management Bill” are as follows: 1. The scope and definition of virtual assets and the hierarchical management of virtual asset operators; all virtual asset operators must join an industry association before they can operate; those whose business scale reaches a certain level must apply for permission from the competent authority, and shall not operate without the permission of the competent authority. Operate virtual asset business. 2. Qualification restrictions for the person in charge and promoter of virtual asset operators; the procedures for virtual asset operators to apply to the competent authority for restricted licenses; the status of the competent authority revoking the license of virtual asset operators. 3. Virtual asset operators shall not do business unless they join the trade association designated by the competent authority; the trade association designated by the competent authority shall handle its business projects. 4. Virtual asset operators may issue virtual assets on their own or be entrusted by others to issue virtual assets and relevant regulations on the issuance of virtual assets; the issuer shall record the issuance quantity, price, subscription conditions, issuer information and other information in a white paper one month before the virtual assets, and publicly disclosed in a manner designated by the competent authority. 5. Virtual asset operators operating virtual asset platforms should formulate review standards and procedures for the listing and removal of virtual assets and incorporate them into the asset operator’s internal control system. 6. Virtual asset operators should abide by the regulations on separation of operator and client assets, and should keep records of client assets. 7. Virtual asset operators should formulate corresponding virtual asset custody policies after assessing the risks of asset custody and make them public to customers. 8. Virtual asset operators should formulate virtual asset transaction rules for the projects they operate and disclose them to customers. 9. Provisions related to the protection of customer rights and interests in transaction contracts concluded between virtual asset operators and customers. 10. The advertising and marketing activities of virtual asset operators should indicate the company name and the business license number issued by the competent authority; their advertising and marketing activities must not be different from the facts or use terms that may mislead people into thinking that the conditions are more favorable than the actual conditions. . … 19. When a virtual asset operator is unable to repay due to business or financial difficulties, the competent authority may take relevant actions; a virtual asset fund should be established, specifying the source of the fund and the circumstances under which the movable fund can be used for repayment; the organization of the fund Relevant regulations for management and reimbursement shall be prescribed by the authorized competent authority. Earlier today, it was reported that Taiwan’s “Virtual Asset Management Bill” passed the first reading in the Taiwanese legislative body.