Taiwan to Recognize Bitcoin as Legal Tender?


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In a recent development, Taiwan has officially announced its intention to recognize Bitcoin (BTC) as a legal tender. This bold move, the first of its kind in Asia, is set to have a profound impact on the global crypto market and is bound to spark conversations about the future of digital currencies in the region.

Taiwan Proposes Crypto Act

Taiwan, a nation known for its technological innovation and progressive outlook, is taking significant strides as it concerns crypto regulation. On October 27, Taiwan’s legislative body formally proposed a draft crypto act for discussion. If this draft is passed into law, it could take effect as soon as next year, ushering in a new era of regulatory clarity in the world of digital assets.

The proposed crypto act was approved at the first reading in Taiwan’s Parliament, known as the Yuan. The new regulations are aimed at addressing various challenges, including concerns about money laundering and consumer protection. Customers who hold digital assets offshore will not have the same level of protection as those using domestic exchanges, as offshore exchanges do not need to adhere to Taiwan’s regulations.

The Financial Supervisory Committee (FSC) is expected to submit its version of the bill soon. If the bill becomes law, all crypto exchanges operating in Taiwan will be required to apply for a license to transact in digital assets. Failure to comply could result in government authorities ordering them to cease operations.

Meanwhile, the second reading of the bill is expected to occur around the end of January 2024. In the meantime, it remains legal to invest in cryptocurrencies in Taiwan. The proposed legislation seeks to make digital asset use more secure, safer, and transparent. It appears that there is overwhelming public support for these regulations in Taiwan.

Are they going to follow El Salvador's footsteps?
This CoinGeek report on the Taiwan proposal doesn't mention anything about making Bitcoin legal tender:
Taiwan edged closer to regulating digital assets after the Virtual Asset Management Bill passed its first reading in parliament, the Legislative Yuan, last week. The bill seeks to define digital assets, ensure customer protection, and introduce a license requirement.

The 30-page bill calls for “better protection” for customers and to “properly supervise” the industry, as well as suggesting obligations for virtual asset service providers (VASPs) such as separating customer funds from the company’s reserve funds, establishing an internal control and audit system, and joining the local trade association.

I suspect the article referenced above may have misrepresented the issue.