Taiwan FSC set to tighten crypto listing rules by January 2025

Taiwan’s Financial Supervisory Commission (FSC) is preparing to introduce stricter regulations for crypto asset listings on exchanges, with the new rules scheduled for implementation in January 2025.

According to Hsi-Ho Huang, director of the FSC’s securities firms division, the upcoming “registration regulation” will require virtual asset service providers (VASPs) to complete compliance registration, aimed at bolstering oversight in the crypto sector.

At the recent FinTechOn conference in Taipei, Huang explained that under the new guidelines, VASPs will need to adhere to detailed protocols for listing and delisting crypto assets.

Huang emphasised that the FSC will require "virtual asset service providers" to complete compliance registration under new rules set to take effect in January 2025.

Non-compliance could result in criminal penalties, including imprisonment of up to two years.

These forthcoming rules are designed to replace the existing anti-money laundering (AML) requirements introduced in July 2021, expanding the FSC’s oversight of the crypto market.

Key regulatory areas will include the custody of fiat currency, information security, customer complaint handling, record-keeping, and enhanced information disclosure.

Additionally, the FSC is mandating that trading platforms establish protocols to detect abnormal trading patterns and prevent unfair practices.

In the realm of asset protection, the regulations will require crypto custodians to either segregate client assets from proprietary assets or place them in trust, with an annual report by a certified public accountant (CPA) confirming the integrity of client asset management.

Beyond these compliance measures, the FSC is also developing a proposal for a dedicated law on crypto assets, set to be submitted to Taiwan’s Executive Yuan by June 2025, as per FSC chair Jin-Lung Peng.