| dc.description.abstract | In 2008, Satoshi Nakamoto introduced blockchain technology, sparking the growth of the virtual asset industry. Virtual assets, founded on blockchain and distributed ledger technology, boast decentralized attributes. However, practical operations still heavily lean on intermediaries, with trading platforms holding pivotal roles. As virtual asset trading platforms increase, so do regulatory challenges. The 2022 FTX bankruptcy highlighted instability risks due to inadequate regulation despite significant capital. In June 2021, Taiwan unveiled the ＂Prevention of Money Laundering and Counter-Terrorist Financing Measures for Virtual Currency Platforms and Trading Businesses,＂ aiming to address the surge in criminal activities within the virtual asset market. However, the regulatory discourse extends beyond mere anti-money laundering efforts. Consequently, in September 2023, the Financial Supervisory Commission (FSC) introduced the ＂Guiding Directions for the Administration of Virtual Asset Platform or Transaction Service Providers (VASP),＂ aiming to regulate VASPs through industry self-regulation while effectively overseeing the virtual asset market.
The virtual asset landscape evolves, expanding beyond centralized exchanges to include custodians, decentralized exchanges, and individual merchants. Additionally, services extend beyond token exchanges, fostering diverse goods and service models, especially in decentralized finance (DeFi). However, questions loom over whether Taiwan′s existing regulations can accurately delineate regulatory parameters and supervise the virtual asset market without stifling industry innovation. Therefore, this study endeavors to explore the regulatory landscape concerning VASPs in Taiwan, with a particular focus on clarifying VASP regulatory frameworks and establishing registration mechanisms—an imperative concern to lay a robust groundwork for the virtual asset market′s regulatory infrastructure. By examining current regulatory delineation challenges from both legal and practical standpoints and drawing upon regulatory approaches from international counterparts, this research aims to propose corresponding recommendations to foster the healthy growth of the virtual asset market and strike a harmonious balance between industry progression and legal stability. | en_US |