The Financial Supervisory Commission (FSC) of Taiwan wants to prohibit foreign VASPs from illegally soliciting business within Taiwan. Specifically, Taiwan is planning to impose restrictions on unregistered overseas cryptocurrency exchanges operating within its borders as part of forthcoming guidelines for virtual asset service providers (VASPs).

On 7 September 2023, the Central News Agency, a local media outlet, reported that Taiwan's Financial Supervisory Commission (FSC) has drafted ten guiding principles for the regulation of virtual currencies in Taiwan. These guidelines encompass measures such as increased information disclosure, requirements for operators to establish standards for reviewing listings and delistings, the segregation of customer and platform assets, and the implementation of anti-money laundering measures by VASPs. Among the ten principles proposed by the FSC is a rule prohibiting foreign VASPs from engaging in unauthorised solicitation of business within Taiwan.

The FSC suggests that overseas cryptocurrency platforms lacking company registration in Taiwan and failing to adhere to its anti-money laundering laws should refrain from soliciting business from Taiwanese citizens. It's emphasised in the report that the FSC will draw upon international best practices and consider future regulatory amendments as necessary. An official announcement is expected to be made by the end of September.

In March, representatives from the FSC announced that the independent government agency would assume the role of Taiwan's primary cryptocurrency regulator according to cointelegraph.com. On 20 March 20, it was noted that the FSC's upcoming regulatory framework for cryptocurrencies would include significant policies and rules, including the separation of company assets from customer funds. Previous crypto developments in Taiwan In August 2022, Taiwan’s Financial Supervisory Commission (FSC) asked credit card companies to ban payments for crypto-related purchases, as the regulator believes these assets are risky and speculative.

At the time, the FSC believed that credit cards should be used only as a payment method for goods and services and not facilitate speculative trading and financial investments, which could easily lead to debt and a high fiscal burden. Credit card providers who served crypto merchants received a timeframe of three months to comply with these t FSC requirements and, once the deadline passed, companies were required to submit an audit report to the regulator. The regulator justified its decision by revealing that credit cards were being used as payment tools to supply irresponsible financial behaviours, including funding online gambling, stocks, futures, options, and other types of transactions which are considered high risk.

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