The Taiwan Legislative Assembly has approved new legislative amendments that will allow the Taiwan Financial Services Commission (FSC) to establish a new department dedicated to handling digital assets.
The new department will be created alongside the existing four divisions that oversee audit companies, banking, insurance, and securities and futures.
The FSC has already announced that the updated regulatory framework will introduce new rules for cryptocurrency companies, including the separation of client funds and company assets.
This move is aimed at protecting users who invest in crypto assets and preventing money laundering through cryptocurrencies.
The creation of the new FSC department also aims to enable the Virtual Asset Agency to conduct comprehensive research on crypto assets without disrupting Taiwan’s financial market stability.
The agency seeks to ensure that the development of crypto assets is discussed in a structured manner to promote their safe and responsible use.
Recall that in 2021, the Taiwanese government imposed stricter regulations on the industry by classifying token-shares as securities and categorizing cryptocurrency companies as traditional finance entities.