The Virtual Currency Business Association of the Republic of China (referred to as the Virtual Currency Association) held its inaugural first members’ meeting on June 13th, with 24 operators from the list of entities that have declared compliance with anti-money laundering regulations by the Financial Supervisory Commission (referred to as the FSC) joining the association. In the inaugural joint meeting of the board of directors and supervisors, Zheng Guangtai, co-founder and CEO of BitoPro, was elected as the first chairman, and Xiao Huizong, co-founder and group revenue officer of XREX, was elected as the first vice chairman.
The Securities and Futures Bureau of the Financial Supervisory Commission (referred to as the FSC) was present to guide during the meeting, with Director Huang Xihe from the Securities Firm Management Division delivering a speech. He emphasized the importance of the development of the virtual asset industry, stating that the establishment of the association will bring more cooperation and consensus to the industry, promoting compliance, standardization, and healthy development to ensure safety, transparency, and stability in the industry, enhancing consumer rights protection. He also stressed that the FSC will enhance cooperation with the Virtual Currency Association in the future to strengthen customer rights protection and improve the industry’s reputation and image.
Chairman Zheng Guangtai expressed gratitude for the support and honor in being elected as the first chairman of the Virtual Currency Association. He highlighted Taiwan’s talent and opportunities, aiming to integrate resources to establish a solid foundation for blockchain upstream and downstream industries in Taiwan, developing reasonable and effective self-regulatory norms.
According to the report by FSC Chairman Peng Junlong on June 12th at the Legislative Yuan’s Finance Committee, regarding the establishment of the “Anti-Money Laundering Act” and the “Prevention of Fraudulent Crimes Act” to prevent virtual assets and VASP from becoming tools for fraud, the management of VASP-related matters will be carried out in four stages:
1. Issuance of the “Anti-Money Laundering and Counter-Terrorism Financing Measures for Virtual Currency Platforms and Trading Businesses” to start regulating VASP.
2. Establishment of VASP industry association to promote self-regulatory norms management.
3. Addition of VASP registration system in the Anti-Money Laundering Act, defining VASP clearly and imposing criminal liability on illegal operators, with differentiated management in subsidiary regulations.
4. Promotion of specialized legislation for virtual asset management to regulate market behavior effectively and promote the sound development of financial technology and VASP industries.
The official establishment of the Virtual Currency Association signifies Taiwan’s progressive regulatory efforts, currently at a crucial moment in the second phase. The phased regulatory model in Taiwan has gained unanimous support from operators, demonstrating the power of public-private cooperation and becoming an international regulatory model for new technologies. It aims to help the virtual currency industry in Taiwan establish itself domestically and internationally.
The Virtual Currency Association, established according to the FSC’s “Guidelines for Managing Virtual Asset Platforms and Trading Businesses (VASP),” serves as a regulatory association and direct communication channel between the industry and the government. Its primary task after establishment is to formulate self-regulatory norms, implement graded and classified management of operators, build an industry chain and ecosystem, meet government expectations, and protect consumer rights. The association expresses high confidence in achieving substantial self-regulation results to prove that operator self-regulation is practical, socially acceptable, and meets expectations.
During the preparatory phase, the Virtual Currency Association has collaborated with the Ministry of Justice and various units to establish mechanisms for anti-fraud, anti-money laundering, and joint prevention. This work will continue to contribute industry technology to law enforcement, significantly reducing industry risks and negative incidents, dispelling the industry’s stigmatization, and creating a clean, safe, and sustainable industry environment. The establishment and practice of the self-regulatory norms will be the solid foundation for achieving this goal.
Former Executive Yuan Political Deputy, current Honorary Chairman of the Taiwan FinTech Association, Tsai Yuling, has been guiding and supporting operators in establishing the association since September last year and serves as the chief advisor. She emphasized the importance of making the virtual currency industry a trustworthy one, urging operators to cherish the regulatory opportunities provided by the authorities, unite instead of blame each other, and set an example for an innovative regulatory approach.