Taiwan's Ministry of the Interior has given the green light to the local cryptocurrency industry's application to establish an industry association, marking a significant step toward regulating this burgeoning sector.

In an announcement made on Friday, the local crypto industry working group, which was formed last year in anticipation of creating an industry association, revealed that it had received official approval from the government for its application.

With this milestone achieved, the working group is now tasked with completing all necessary preparations to officially establish the cryptocurrency industry association by the end of June, following government directives.

Comprising 22 prominent crypto firms, including leading exchanges such as MaiCoin and BitoPro, the working group decided to exclude ACE Exchange due to ongoing investigations involving former executives' alleged misconduct.

Moving towards Self-Regulation

Taiwan's current regulatory framework requires cryptocurrency service providers to adhere to anti-money laundering laws, following the implementation of regulations by the Financial Supervisory Commission in July 2021. However, beyond these requirements, the crypto industry largely operates in a regulatory gray area.

In September 2023, the FSC issued guidelines emphasizing the importance of customer protection for crypto firms. By establishing an industry association, crypto companies aim to develop self-regulatory measures aligned with these guidelines. This move is anticipated to promote greater accountability and transparency within the industry, fostering trust among stakeholders and regulators alike.