Taiwan has always been quiet when it comes to the blockchain and cryptocurrency scene, but recently Taiwanese regulators are starting to pick up the trend of the crypto market and believes that blockchain can indeed play a major role in future technology.
Regulators and legislators of any region play a major role in boosting or suppressing the innovation in that region. Innovators alone can’t do anything if regulators don’t provide a conducive environment for innovation.
The honest truth is that the crypto market does need regulation. Regulation might sound like a mess and can seem to delay a lot of approvals with cryptocurrency, but it is what sets things in place. Regulation is what will bring cryptocurrency and blockchain to the mainstream.
In this world of 7 billion people and more than 200 countries, we see the examples of both these types of regulators. The Taiwanese regulators seem to fall in the category of pro-innovation regulators, as they have been working with Ripple behind the scenes to foster the innovation in blockchain sector of their region.
That’s right. Ripple recently tweeted an image with Taiwanese Legislator Karen Yu, who had visited Ripple Headquarters to discuss how can Ripple help in boosting financial inclusion with help of its technology.
It’s great to see that Taiwan wants to use the technology and opportunity provided by blockchain and cryptocurrencies to boost financial inclusion. In the recent days head of Taiwan’s Central Bank has also been eyeing the growth of blockchain sector, which means that in future we may see more implementations of blockchain technology in Taiwan.
Taiwan and cryptocurrency
On November 2 of 2018, Taiwan officially tightened anti-money laundering (AML) policies targeted at crypto exchanges, requesting exchanges to monitor and prevent any illegal transaction processed using digital assets.
According to the newly drafted Money Laundering Control Act and Terrorism Financing Prevention Act approved by the Legislative Yuan, one of the five branches of the Taiwanese government, the country’s Financial Supervisory Commission (FSC) now has authority over crypto exchanges to ban transactions suspected of being tied to fraudulent operations.
Taiwan’s Ministry of Justice (MoJ) released a statement following the approval of the new AML bill, emphasizing that the government is working towards meeting international AML standards by encouraging businesses to foster a “compliance culture and mindset.”
Until this year, the government of Taiwan was skeptical towards regulating the local cryptocurrency exchange market and blockchain sector.
So far, Taiwan has not led sufficient initiatives to lure in some of the biggest cryptocurrency and blockchain-related businesses from other major markets. But, if Hsu and the coalition continue to drive the adoption of crypto in Taiwan, in the mid-term, companies enter the market given that stable banking services and support from the government are guaranteed.