Taiwan Mobile, the second-largest telecommunications provider in Taiwan, has secured a virtual asset service provider (VASP) license from the Financial Supervisory Commission (FSC), local reports confirm. This major development allows Taiwan Mobile to launch its own cryptocurrency exchange, marking its official entry into the crypto market.
Known in Chinese as Taiwan Big Brother, Taiwan Mobile is the 26th company in the nation to receive a VASP license. Bloomberg notes that the company has been eyeing the crypto market for over a year, possibly through acquiring an existing exchange. The VASP license was granted under the name of Fusheng Digital, a subsidiary owned by Taiwan Mobile, both overseen by CEO Lin Zhichen.
To obtain the VASP license, Taiwan Mobile had to meet strict Anti-Money Laundering (AML) requirements. With these hurdles cleared, the company is now eligible to join the Taiwan Virtual Asset Service Provider Association, a self-regulatory organization established in June. The association, mostly composed of startups, will benefit significantly from Taiwan Mobile’s involvement, bringing in new experience and resources, according to chairman Zheng Guangtai.
Taiwan’s regulatory landscape for cryptocurrencies has been evolving, becoming increasingly stringent. The FSC took over crypto regulation in mid-2023, introducing management guidelines and banning foreign operators in September. In October, a bill supporting these guidelines with fines was introduced in the Taiwanese parliament. The FSC further announced plans in March to propose a bill to enhance regulation and consumer protection. Additionally, the Justice Ministry suggested amendments to AML laws in May, making violations by VASPs punishable by prison terms.
In a significant collaboration, Binance worked with the Justice Ministry in May to resolve a $6.2 million money laundering case, leading to charges against nine individuals for money laundering, fraud, and organized crime. Taiwan Mobile’s foray into the crypto market signifies a crucial step in the industry’s growth and the tightening regulatory framework surrounding it.
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