Taiwan Mobile Enters Crypto Market as 26th Licensed VASP

• Taiwan Mobile granted VASP licence, entering crypto market as Taiwan’s 26th licensed Virtual Asset Service Provider.
• Taiwan Mobile’s entry into the crypto market brings new resources, industry experience, and potential for a cryptocurrency exchange.
• The FSC’s crypto regulations and Taiwan Mobile’s involvement boost transparency, security, and industry standards.

Taiwan Mobile, the second-largest telecom operator in Taiwan, has been granted a Virtual Asset Service Provider (VASP) license by the Financial Supervisory Commission (FSC). This marks the company’s official entry into the crypto market, positioning it as Taiwan’s 26th licensed VASP.

Taiwan Mobile’s New Venture

With 9.86 million users, Taiwan Mobile, also known locally as Taiwan Big Brother, plans to expand into the digital asset space. The FSC’s approval on July 5 allows Taiwan Mobile to explore potential opportunities within the crypto market, possibly including the launch of a cryptocurrency exchange. This move has sparked interest and speculation about the company’s next steps in the industry.

To secure the VASP license, Taiwan Mobile had to comply with stringent Anti-Money Laundering (AML) regulations. These requirements ensure that the company adheres to high standards of transparency and security. Once these conditions are met, Taiwan Mobile becomes eligible for membership in the Taiwan Virtual Asset Service Provider Association, an organization founded in June to self-regulate the industry.

Industry Impact

The entry of a major corporation like Taiwan Mobile into the VASP arena is expected to provide a significant boost to the industry. According to United Daily News, most members of the VASP association are startups, so Taiwan Mobile’s involvement brings new resources and experience. Association Chairman Zheng Guangtai emphasized the benefits of having diverse sector representation in the organization.

The FSC took over crypto regulation responsibilities in mid-2023. In September, it issued management guidelines for crypto businesses and prohibited unregistered foreign operators. Following this, a bill supporting these guidelines with fines was introduced in October. The FSC also announced plans to enhance consumer protections through new legislation.

In addition, the Justice Ministry proposed amendments to AML laws in May, aiming to impose stricter penalties on VASPs for violations. These changes could include fines up to $1.5 million or prison terms for responsible parties.

Collaborative Efforts

Binance collaborated with the Justice Ministry in May to resolve a $6.2 million money laundering case, leading to charges against nine individuals. This collaboration shows the ongoing efforts to combat fraud and criminal activities within the crypto sector.

Taiwan Mobile’s entry into the crypto market aligns with the country’s push for a transparent and equitable system for digital assets. By exploring collaborations with local cryptocurrency platforms and considering investments in the industry, Taiwan Mobile aims to leverage its VASP status to shape the future of Taiwan’s digital asset market. The combined impact of Taiwan Mobile’s move and the efforts of the VASP Association highlights Taiwan’s commitment to fostering a crypto-friendly environment, in line with international best practices for consumer protection.