The Financial Supervisory Commission (FSC) of Taiwan will become the main regulator of cryptocurrencies in the island country, according to the head of the authority.
FSC chairman Huang Tien-mu has announced that the regulator will assume the supervisory authority on the crypto industry in Taiwan, the local news agency United Daily News reported.
Huang addressed Taiwan’s parliament, the Legislative Yuan, on March 20 regarding the regulation of cryptocurrencies in the Republic of China (ROC). He pointed out that the FSC’s upcoming crypto regulatory framework will include major rules and policies, including separation of customer assets from company’s funds and investor protection practices.
The official specified that the FSC is currently instructed by the nation’s highest administrative body — the Executive Yuan — to supervise payments and transactions in the crypto market. Huang stressed that other types of industry-related assets like nonfungible tokens, or NFTs, may not fall under FSC’s supervision.
Huang also noted that the FSC will initially pay special attention to self-regulation principles in the cryptocurrency industry in Taiwan. The official added that the authority will follow the instructions of the Executive Yuan.
Related: China announces plans for new national financial regulator
According to a report by Taiwan’s Central News Agency, Taiwan lawmakers expect to develop and approve a relevant crypto regulatory framework by the end of March or April at the earliest. The current preliminary plan reportedly aims to put the regulation of NFTs under supervision of the Ministry of Digital Affairs.
The news comes amid Taiwan facing ongoing tensions with China, with the Chinese government considering Taiwan as a breakaway province, which it vowed to place under its control. Unlike some crypto-friendly jurisdictions in the Asia-Pacific region, such as Hong Kong or Singapore, China has emerged as a major anti-crypto country, placing a blanket ban on crypto in 2021.