Taiwan Mobile, the second-largest telecommunications provider in Taiwan, has recently been granted a Virtual Asset Service Provider (VASP) license by the country’s Financial Supervisory Commission (FSC), as per local reports. This license paves the way for the company to establish its own cryptocurrency exchange.
Referred to as Taiwan Big Brother in Chinese, Taiwan Mobile is the 26th entity to receive a VASP license. Reports suggest that the company has been exploring opportunities in the cryptocurrency market for more than a year. Sources at Bloomberg speculated that Taiwan Mobile had been considering the acquisition of an existing exchange. The license was issued under the name of Fusheng Digital, a subsidiary of Taiwan Mobile, with both entities being overseen by Lin Zhichen.
In order to obtain the VASP license, Taiwan Mobile had to adhere to various Anti-Money Laundering (AML) prerequisites. Upon meeting these requirements, the company becomes eligible to join the Taiwan Virtual Asset Service Provider Association, a self-regulatory organization established in June.
Most members of the VASP association are startups, and the entrance of a major corporation like Taiwan Mobile is expected to inject new energy into the industry, reported the United Daily News. Zheng Guangtai, the association’s chairman, highlighted that the inclusion of companies from diverse sectors would bring fresh expertise and resources to the organization.
Cryptocurrency regulation in Taiwan has been evolving, with the FSC taking over regulatory oversight in mid-2023. In September, the commission formulated management directives for crypto enterprises and prohibited foreign operators. Subsequently, a bill endorsing the FSC guidelines with penalties was introduced in the Taiwanese parliament the following month.
In a move to enhance regulation and bolster consumer safeguarding measures, the FSC announced in March its intention to present a bill to parliament. The Justice Ministry also proposed amendments to Anti-Money Laundering (AML) legislation in May, seeking to subject VASPs to possible imprisonment for violations committed by relevant individuals.
In a cooperative effort with the Justice Ministry in May, Binance helped resolve a $6.2 million money laundering case, resulting in charges against nine individuals for offenses including money laundering, fraud, and organized crime.
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