Unlike China and South Korea, Taiwan isn’t going to take further measures to ban or limit the use of cryptocurrency. This relaxed attitude will allow for the natural evolution of crypto markets, although the government still retains the right to make any necessary changes. Taiwan’s governmental officials, though, are still worried about possible money laundering schemes involving crypto, so Taiwan isn’t a crypto paradise yet.
China, in contrast, is about to introduce more restrictive regulation. The new bill will ban ICO’s as well as cryptocurrency exchanges. India and South Korea are also about to introduce their own crypto regulations. According to present laws in Taiwan, only crypto exchanges are legal. Anyway, more and more local banks are getting interested in becoming a part of the crypto world.
Moreover, older regulations are going to be relaxed in order to help emerging startups avoid unnecessary fines, thanks to Act on Financial Technology Innovations (FinTech). Startups, of course, need to apply for approval in order to receive these bonuses.
Taiwan is not the only country to have an overall positive outlook on a bit risky FinTech sector. Japan, since April 2017, accepts bitcoin as a legal tender and is well on its way to becoming a major crypto power rivaled only by China.
It’s obvious that regulators are not used to dealing with decentralized systems like cryptocurrencies. Many of them underestimate how easy it is for crypto companies to move to countries with friendlier stance toward crypto. Taiwan, it seems, is trying to find a right balance between financial freedom and security for its citizens.