In contrast to the actions of China and South Korea, Taiwan will not tighten cryptocurrency legislation and will adhere to a neutral position in the regulation of cryptocurrencies.
This will allow the market to continue growth and give the government the opportunity to make changes if necessary. While Taiwan is still far from becoming a safe haven cryptocurrency industry. Authorities have repeatedly warned
about the dangers of cryptocurrency-related tax evasion, financial crimes and speculations that have the potential to affect national banks of Taiwan due to not enough regulation.
One of the closest neighbors of Taiwan — China — as you know, chose a very different approach to regulating the industry. Current rules prohibit
the ICO and carrying out the work
cryptocurrency exchanges. India and South Korea are also working on laws that will regulate scriptacolous. Currently, Taiwan prohibits banking transactions with the digital currency or financing through the ICO, however, the exchanges allowed, and even large banks of Taiwan begin to participate in it.
Moreover, the Taiwan government has already approved a bill that would weaken the regulation of new start-UPS, so they can avoid some of the penalties imposed on the company founded earlier. The Law on financial technological innovation will allow Taiwanese startups to apply for approval of their work, which will ensure the conduct of business under the new rules.
Taiwan is not the only state who understands the capabilities of industry Finance. In April 2017, Japan recognized
bitcoin legal tender. Not only the authorities but also enterprises are actively interested in cryptocurrencies. It was recently reported that a major power company of Japan is testing the payments to the Lightning Network, and in March of this year, local cryptocurrency exchange created
the self-regulatory body.
The decentralized nature of cryptocurrencies it is not an easy task for regulators. Many of them do not understand that startups will simply leave the country in case of tighter regulation in a more favorable jurisdiction, taking with them their taxes and innovation. However, to put the development industry on the course – also not the best solution, which could jeopardize the country’s financial system.
Now Taiwan is trying to find a balance that will help the state prepare for the future, because cryptocurrencies are developing with tremendous speed and the country must be able to withstand the flourishing FINTECH-innovation, while protecting its citizens from fraud.