Taiwan’s FSC Likely to be Named Main Crypto Regulator

Taiwan is mulling the idea of announcing the top financial regulator Financial Supervisory Commission (FSC) as the overseer of crypto activities and the nascent industry in the region. 

According to Huang Tien-mu, the Chairperson of the Financial Supervisory Commission of the Republic of China, in the days following the official announcement, FSC will probably team with industry participants on “self-regulation measures.”

The official declaration is likely to be made public by the end of this month based on a statement made by a person familiar with the matter. Tien-mu told lawmakers that the FSC will oversee payments and other transactions but will not include Non-fungible tokens (NFTs). 

Sources have it that the Taiwan cabinet is already in discussions with other government agencies and crypto industry juggernauts to design a concrete framework for the plan. Before this time, Taiwan has never officially appointed a regulator for the crypto industry in its region, therefore, this is the first time that there will be a tilt from its usual hands-off approach.

Call For Robust Crypto Regulation

Regulators worldwide began intensifying their push for robust regulation in the cryptocurrency industry after the turbulent crypto winter year which encompassed the crash of the TerraUSD/LUNA and the unexpected implosion of FTX. The European Central Bank (ECB) president Christine Lagarde told policymakers that there was an urgent need for standard regulation.

“At least Europe is ahead of the pack [in terms of regulation],” Lagarde added. “But as I said previously, it’s one step in the right direction. This is not it — there will have to be a MiCA II, which embraces broader what it aims to regulate and to supervise, and that is very much needed.”

Similarly, the International Monetary Fund (IMF) is pushing for more crypto regulation in Africa especially, in terms of customer protection.

The organization mentioned that this regulatory framework is significantly essential for Africa as a region where crypto is thriving. The United Kingdom is not left out and has recently released a consultation paper that shows the strategies it plans to implement for the crypto sector in the region.

Even Taiwan’s neighbors Japan, Hong Kong, and Singapore, are also working on their crypto regulatory framework