There is some degree of financial unrest in the world at present. To this end, the governments of different countries have decided to revisit their stance on cryptocurrency regulations. Recently, the government of Taiwan is also working on revising its regulatory clarity on the matter of cryptocurrency trading.
These changes are taking place in the Financial Supervision and Administration Committee or FSC. For this reason, FSC has also established a new cryptocurrency regulatory agency called the Ministry of Digital Affairs or MODA.
These changes are not unexpected considering the changing stance around cryptocurrencies around the world. Therefore, the government of Taiwan has decided to set up a specialized and dedicated cryptocurrency regulatory agency under the supervision of FSC.
This new agency is going to handle all the matters regarding centralization and legislative clarity for the cryptocurrency entities operating within its jurisdiction. The government has also appointed Huang Tien-Mu as the chairperson of FSC during a recent Parliamentary hearing.
Global Banking Stability
Recently, three banking enterprises in the USA have fallen. There have been some speculations in financial circles about the role of cryptocurrencies in destabilizing these traditional banking enterprises. However, the cryptocurrency sector maintains that these crashes are the result of the failure of traditional banking systems.
Nevertheless, there is an air of uncertainty and panic around the world concerning the stability of their financial institutions. It seems that Taiwan has taken a page out of the book and introduced specialized regulatory clarity on the matter of cryptocurrencies.
However, the crypto sector has received these changes as a welcome occurrence. To this end, Wayne Huang who is the founder and CEO of the XREX project recently tweeted that the crypto sector is going to benefit from these developments. Under these new rules, all cryptocurrency enterprises are required to get a trading license from the regulators.
Meanwhile, the government has also offered consultations on the matter of ensuring regulatory compliance for various digital currency projects. The official charter about these changes will make a public appearance sometime in June this year.
Since the demise of the FTX exchanges the stance of cryptocurrency investors has changed towards the crypto trading platforms. More users are shifting their cryptocurrency reserves to non-custodial wallets to have full control over their cryptocurrency funds.
On this matter, Taiwan is following in the footsteps of Hong Kong. It is worth noting that Hong Kong is planning to become the global hub of cryptocurrency innovation in the world.
To prevent any catastrophes like FTX in their jurisdiction governments like Taiwan and Hong Kong are taking the necessary regulatory precautions to stop them. The FTX demise hurt the interests of the investors and crypto stakeholders in Taiwan more than others. Media reports have suggested that Taiwan faced a loss of $20 billion in damages from the FTX collapse.