Taiwan VASP Association Launched! Virtual asset industry enters new era
The Taiwan Virtual Asset Service Providers (VASP) Industry Association convened its inaugural meeting and first board election today (June 13), establishing a "regulatory association" that marks a significant milestone in the legal and regulatory development of Taiwan's virtual asset industry. The meeting brought together numerous industry participants, culminating in the election of 14 board members who will spearhead the promotion of relevant regulations and industry self-regulation guidelines, to enhance investor confidence and foster healthy industry development.
VASP Inaugural Board Announced, Committed to Creating a Safer Investment Environment
At the founding meeting, the 24 founding members, all of whom had completed AML compliance declarations, gathered to elect 11 directors and 3 supervisors, including: (Full List)
The complete list of the first Board of Directors is as follows:
"Our ultimate goal is to establish specialized laws that align with financial regulations," explained David Wang, co-founder of Taiwan's beginner-friendly one-stop trading platform, ZONE Wallet. "As more novice investors enter the virtual asset market, we will leverage our board positions to promote self-regulation, creating a safer and more transparent investment environment to protect investor interests."
Ongoing Challenges in the Virtual Asset Industry: Establishing Specialized Laws and Enhancing Security Measures
In the rapidly evolving virtual asset market, fraud and security threats are rampant. To protect consumers and ensure transaction security, VASP is committed to setting deposit and withdrawal limits to prevent money laundering and is also dedicated to researching management-specific laws.
The association aims to present recommendations to the Financial Supervisory Commission (FSC) by the end of September this year. The objective is to jointly submit a draft of specialized legislation with the FSC to the Executive Yuan in the first half of 2025.
Given the anonymous, cross-border, and decentralized nature of virtual asset transactions, money laundering and related financial terrorism incidents have been indirectly triggered. While the industry previously prioritized technology and business models, VASP now aims to establish a comprehensive regulatory system, working with the FSC to conduct anti-money laundering and counter-terrorism financing inspections.
Before the specialized laws are officially implemented, David Wang advises novice investors and retail traders to focus on key security aspects when selecting investment platforms. Beyond verifying whether the institution is a VASP member, it is crucial to ensure that the exchange or wallet service can provide at least the following security measures:
- High-Security Asset Storage: Safeguarding user funds
- Data Encryption: Protecting user privacy
- Regular Security Testing: Preventing breaches and maintaining system stability
David Wang concluded, "Currently, about 5% of Taiwan's population participates in virtual assets, but this could grow to 15% within the next five years, including novice investors, seasoned stock market players, petite bourgeoisie, and quick-learning young people. As a compliant trading platform, ZONE Wallet is committed to working with industry peers to enhance security protections and create a more friendly and secure investment environment."
