[NEWS] Taiwan Mobile obtains VASP license and establishes cryptocurrency exchange

Taiwan Mobile, the second largest telecommunications company in Taiwan, has obtained a Virtual Asset Service Provider (VASP) license from the Financial Supervisory Commission (FSC). It will set up a cryptocurrency exchange through its subsidiary Fusheng Digital and enter the digital asset market.

Fusheng Digital's name is listed on the list of cryptocurrency platform operators on the FSC's official website, which means that the company is already able to set up and operate a cryptocurrency exchange.

Taiwan Mobile has overcome regulatory requirements, including strict anti-money laundering (AML) requirements. The result of obtaining a VASP license paves the way for Taiwan Mobile to enter the cryptocurrency market, making it the 26th company in Taiwan to hold a VASP license.

As a major telecommunications company in Taiwan, it is only a matter of time before it catches up with existing providers such as Mai Coin, BitoPro, and XREX.

Bloomberg previously reported that Taiwan Mobile was considering investments to enter Taiwan's digital asset market, suggesting that there may be moves toward setting up a cryptocurrency exchange.

Taiwan Mobile has 10 million customers. Taiwanese retail investors may be more likely to invest in the cryptocurrency market in the future.

Taiwan's cryptocurrency regulatory environment is rapidly evolving. In 2021, the FSC launched strict anti-money laundering regulations targeting cryptocurrency service providers.

These regulations were further strengthened in September 2023 when comprehensive guidelines were released, including a ban on unregistered Bitcoin exchanges operating in Taiwan.

The development of the regulatory framework led to the establishment of the Taiwan Crypto Asset Service Provider (VASP) Association, chaired by Titan Cheng, founder and CEO of BitoPro.

The association is committed to the cryptocurrency industry, working with government agencies and law enforcement agencies to set up its own self-regulation to mitigate fraud and criminal activities within the industry.

Taiwan implements cryptocurrency-friendly legislation

Taiwan's Ministry of Justice has proposed amending the Anti-Money Laundering Act to expand its scope to digital asset providers. Under the proposed amendments, crypto companies that violate the law will be fined up to $1.5 million or face prison time.

Taiwan Mobile's entry into the crypto market is in line with the country's efforts to establish a transparent and fair system for crypto assets.

Taiwan Mobile's move and the synergy of the newly formed industry association demonstrate Taiwan's dedication to fostering a crypto-friendly environment in line with international best practices in consumer protection.

Taiwan Mobile is also exploring collaboration with local crypto platforms and considering investments within the industry.

Source: FSC announcement, Bloomberg
Image: Shutterstock

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