Taiwan’s Ministry of Economic Affairs (MOEA) has formalized the designation of trading activities surrounding cryptocurrencies. Moreover, a specialized body was appointed to oversee these operations. This development comes after years of regulatory uncertainty in the virtual currency market.
At a recent cabinet meeting, the Ministry of Agriculture reportedly concluded that crypto companies will be included under the “finance, insurance, and real estate” category as “virtual currency platforms and trading firms” rather than the “software design services” category.
Security token offerings (STOs), a type of public offering of digital tokens using blockchain or distributed ledger technology, will be listed under a subcategory of securities firms. As such, it will be subject to the same supervision as companies based in the securities industry.
In addition, the authority has made the FSC (Financial Supervisory Commission) the main authority responsible for supervising cryptocurrency operations.
Thus, the commission needs to work with tax and legal departments to establish rules to regulate the sophisticated but volatile cryptocurrency market.
Cryptocurrencies are growing away from governments
Cryptocurrency operations have grown sporadically over the years even without direct government support. Thus, led by the rise of Bitcoin, cryptocurrency, and blockchain companies have emerged over the past few years in Taiwan, which was once the home of the cryptocurrency exchange Robinhood.
The first Bitcoin exchange-traded fund (ETF) has started trading in the US with exciting results.
The market capitalization has also recently crossed 3 trillion US dollars (83 trillion NT dollars).
While these developments certainly look promising, the Taiwanese legislature is calling for proactive moves to close crypto loopholes and protect domestic investors and consumers.
The world of cryptocurrency can seem daunting to outsiders with all its technical jargon and jargon, in addition to confusion, there are unscrupulous individuals who find ingenious ways to trick people into scams and crypto schemes. But the virtual currency is expected to grow even more.
Many governments around the world fear cryptocurrency because it is an independent entity that, unlike physical money, is not issued by a central bank.
It moves freely in the digital world without the control of the government or any bank. In short, it is centralization, reason enough to often refer to it as a global currency.
However, cryptocurrencies can also act as a huge boost to the local economy. Studies also reveal that countries that welcome crypto networks reap economic benefits through innovation, investment, jobs, and taxes.
Additionally, poorly banked countries can make the most of digital currency to facilitate trade.
Taiwan is on a step of the benefits of digital transformation
By appointing and supervising cryptocurrency operations, Taiwan could be one step closer to reaping the benefits of digital transformation. And it can make its dream of digital adoption for all its citizens as stipulated in the Digital Nation and Innovative Economic Development Program.
The success of these initial steps toward crypto should be evident in the future, as Taiwan is committed to advancing its digital economy. It has been finding ways to position itself as a global leader in the field of Information and Communication Technology (ICT).
For example, its recent creation of the Artificial Intelligence Center was intended to testify to the strength of AI in the region as reported in the Asia OpenGov program.