Taiwan has officially established the Taiwan Virtual Asset Service Provider Association (TVASPA), marking a significant move toward regulating its cryptocurrency sector. The formation of this industry association follows guidance from the government and includes 24 registered crypto firms that comply with the Financial Supervisory Commission’s (FSC) anti-money laundering (AML) rules.

Titan Cheng, founder and CEO of BitoPro, will chair the association, with Winston Hsiao, co-founder and chief revenue officer of XREX, serving as vice chair. The primary task for TVASPA is to develop self-regulatory guidelines, focusing on the classification and grading management of Virtual Asset Service Providers (VASPs). This initiative aims to align industry practices with government expectations while protecting consumer rights.

Hsiho Huang, director of the securities firms division at the FSC, emphasized the importance of the virtual asset industry’s healthy development for societal and economic growth. The FSC has mandated that the association create self-supervisory rules to enhance oversight of crypto trading platforms.

Since July 2021, cryptocurrency service providers in Taiwan have been required to comply with AML laws. However, the industry remains largely unregulated beyond these requirements. Recently, the Ministry of Justice proposed amendments to existing AML laws that would require both domestic and overseas crypto firms operating in Taiwan to register for AML compliance, with non-compliance potentially resulting in imprisonment for up to two years.

The establishment of TVASPA represents a proactive step by Taiwan's crypto industry to self-regulate and establish a framework for responsible growth. This move is expected to enhance transparency, protect consumers, and foster a healthier development environment for virtual assets.