Financial regulator to unveil virtual asset service provider guidelines

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The Financial Supervisory Commission (FSC) said on Thursday it will soon unveil guidelines for virtual asset service providers (VASP) in the wake of concerns over financial investments or transactions, to ensure transparency in financial product information, information security and prevent money laundering.

In a statement, the FSC said it previously only oversaw money laundering involving virtual assets but has recently been required by the Cabinet to supervise e-commerce platforms providing services that enable users to make investments or conduct transactions.

It expects to unveil guidelines on the management of VASPs based on the Money Laundering Control Act in the near future, the FSC said.

The guidelines will cover the disclosure of necessary information by VASPs, review procedure for the listing and removal of products, the transparency of transactions, prevention of money laundering, protection of consumer rights and interests, service provider operating systems and the management of hot and cold cryptocurrency wallets.

Several illegalities involving VASPs have recently been reported overseas, and the guidelines will seek to protect consumers from losses stemming from transactions using virtual assets, the FSC said.

The guidelines will be consistent with international auditing trends governing VASPs, the FSC said.

After the introduction of the guidelines, a further push will be made for VASPs to become self-governing and Taiwan Blockchain Alliance and the Taiwan Fintech Association are likely to be designated to head efforts to improve internal auditing at VASPs, the FSC said.