Taiwan Mobile, the country’s second-largest telecommunications provider, has received a virtual asset service provider (VASP) license from Taiwan’s Financial Supervisory Commission (FSC). According to the crypto update, this license allows Taiwan Mobile to establish a cryptocurrency exchange, marking a significant step for the telecom giant in the crypto market.
Licensing and Regulatory Compliance
Taiwan Mobile, also known as Taiwan Big Brother in Chinese, is the 26th company to receive a VASP license. The company had been considering entering the crypto market for over a year. Reports from news sources indicated that Taiwan Mobile was initially looking to acquire an existing exchange. The VASP license was issued under the name Fusheng Digital, a company owned by Taiwan Mobile. Lin Zhichen leads both entities.
To secure the Taiwan Mobile VASP license, the company had to adhere to several Anti-Money Laundering (AML) requirements. Meeting these criteria made Taiwan Mobile eligible for membership in the self-regulatory Taiwan Virtual Asset Service Provider Association, established in June.
Impact on the VASP Industry
The VASP association primarily comprises startups, making Taiwan Mobile’s entry a significant development. The presence of a major corporation like Taiwan Mobile is expected to boost the industry, bringing in new experience and resources. Zheng Guangtai, the association’s chairman, emphasised that adding companies from various sectors would provide valuable diversity to the association.
Evolution of Crypto Regulation in Taiwan
The Financial Supervisory Commission took charge of crypto regulation in mid-2023. In September, the FSC introduced management guidelines for crypto businesses and banned foreign operators. In October, a bill was presented to the Taiwanese parliament to support FSC guidelines with fines.
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In March, the FSC announced plans to introduce a bill to parliament to strengthen regulation and enhance consumer protections. Following this, the Justice Ministry proposed amendments to AML laws in May. These amendments would allegedly make violations by VASPs punishable by prison terms for responsible parties.
In a notable incident in May, Binance collaborated with the Justice Ministry to solve a $6.2 million money laundering case. This operation led to nine individuals being charged with money laundering, fraud, and organized crime.
General Impact of Telecom Companies Entering the Crypto Market
The entry of telecom companies into the crypto market typically brings significant benefits and changes. With their vast resources and established infrastructure, telecom companies can provide the necessary technological and financial support to develop robust crypto services. Their involvement often leads to increased trust and adoption of cryptocurrencies among the general public.
With the Taiwan Mobile VASP license, the company is positioned to leverage its extensive customer base and technical expertise to establish a reliable and user-friendly cryptocurrency exchange.
With the entry of a major telecom company, the industry can expect increased credibility and resources. Taiwan Mobile’s move into the crypto space could encourage other large corporations to consider similar ventures, potentially transforming the landscape of the crypto market in Taiwan.
Conclusion
The Taiwan Mobile VASP license issuance is a notable milestone for both the company and the broader crypto market in Taiwan. As the industry continues evolving with stricter regulations and more significant players entering the field, the future of cryptocurrency in Taiwan appears promising. With Taiwan Mobile’s experience and resources, the company is well-positioned to substantially impact the crypto market.
Integrating telecom expertise into the crypto industry will likely drive innovation, enhance security, and boost consumer confidence in cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). As the crypto market in Taiwan grows, updates from major players like Taiwan Mobile, reported by The BIT Journal, will be closely watched by industry observers and participants alike.Â
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