Taiwan Deals Major Blow To Offshore Exchanges

September 7, 2023 10:58 am Comments

Crypto regulations continue to tighten all around the world due to the actions of terrified governments and an almost obsolete banking sector.

As part of that trend, officials in Taiwan have dealt a major blow to offshore exchanges operating in the tiny South Pacific nation. According to sources, Taiwan will no longer allow offshore exchanges to operate in the country without the proper paperwork.

Additionally, such paperwork features KYC controls and represents a violation of privacy on the part of the user.

Previously, Taiwan announced that purchasing cryptocurrencies and digital assets using a credit card would no longer be allowed within the country.

Multiple sources have confirmed the regulatory squeeze currently happening in Taiwan.

The Block had the inside scoop:

One key restriction would be to strictly prohibit the illegal solicitation of business by foreign crypto firms. The FSC plans to specify in the guiding principles that if foreign VASPs do not register in accordance with company law and declare their compliance with anti-money laundering regulations to the FSC, they are not allowed to solicit business within Taiwan or to domestic residents.

One user celebrated the recent announcement: “Kudos to Taiwan for taking a proactive stance! Restricting unregistered, non-compliant foreign crypto exchanges is crucial for investor protection and regulation. Let’s continue promoting responsible crypto practices worldwide!”

Coinspeaker explained:

An FSC official also stated that the government is planning to release the guiding principles for the crypto exchanges by the end of this month. These principles will include strengthening information disclosure and requiring businesses to establish review standards for crypto listing and delisting.

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