Interview: Taiwan's Regulatory Upgrades in September! How do major compliant exchanges in Taiwan view self-regulation by the association and competition from overseas operators?

The Financial Supervisory Commission (FSC) of Taiwan is set to release the "Guidelines for Managing Virtual Asset Platforms" in September, and will oversee the establishment of self-regulatory measures by industry players. Interviews with major compliant exchanges in Taiwan, including ACE, MaiCoin, BitoEx, and HOYA BIT, shed light on their perspectives regarding the "FSC guidelines," "industry self-regulation," and "competition from overseas players."

Background: Exclusive | Interpreting the Draft Guidelines from Taiwan's FSC

MaiCoin/MAX: Overseas Operators in Taiwan Should Adhere to the Same Standards, Concerned About Low Efficiency of Association Consensus

Interview with MaiCoin Group on the advantages and disadvantages of regulatory guidelines and the perspective on competition among overseas operators.

The MaiCoin Group stated, "We remain optimistic about the regulatory guidelines. The Financial Supervisory Commission has always been focused on protecting investors, which is no different from MaiCoin's operating principles. We hope that both local and overseas VASP operators can have the same consensus standards in Taiwan, in order to achieve the goal of mainstreaming the cryptocurrency industry."

The MaiCoin Group also mentioned the challenge of establishing an association and self-regulatory norms in the future: "However, we are indeed concerned that after the Financial Supervisory Commission issued the draft regulatory guidelines, requiring VASP operators to establish an 'association' and jointly formulate self-regulatory norms, it seems to provide space for operators to express their opinions. However, given the different sizes of operators currently, whether they can reach consensus and mutually review and enhance risk control standards in a short period of time without causing panic or negative public perception, this is likely to be the next stage challenge."

ACE: Overseas Non-Compliant Platforms Not Rigorously Scrutinized, Slow Recovery of High Compliance Costs

ACE Exchange also expressed the view that "standards should be consistent":

"Currently, the regulatory authorities have not strictly restricted the use of overseas VASP platforms that have not landed in Taiwan. From the perspective of 'safeguarding user asset security,' there are inevitably higher asset security risks. ACE stands in support of overseas VASP operators intending to land in Taiwan, but at the same time, ACE also expects the regulatory authorities to align the examination standards and density for overseas VASP operators with those of domestic VASP operators, and strictly restrict the operation of unlanded and high-risk overseas platforms in Taiwan. Only in this way can the goal of truly safeguarding user asset security be realized, and a sound virtual asset trading environment in Taiwan can be established."

ACE Exchange welcomes the formation of a self-regulatory association, stating that having a clear direction and progressing step by step is positive. Understanding what can and cannot be done, and having space for coordination with regulators is essential. However, the concern remains that local operators bear high compliance costs, yet the business they can engage in is still limited, making it difficult to recoup expenses compared to unrestricted overseas operators, posing challenges in competition.

BITO Group: Regulation Contributes to Market Confidence, Overseas Operators Have Guidelines to Follow

BITO Group stated, "Regulation and development of cryptocurrencies must go hand in hand. Regulation is not about stifling, but rather a form of protection for the public, increasing market confidence and stability. Although regulation brings certain legal compliance and cybersecurity costs to local operators, BITO has actively participated in the development of VASP regulatory guidelines and self-regulatory norms, having already established various internal audit and control mechanisms, fraud management, and transaction pattern mechanisms. The relevant supporting measures and systems are gradually being adjusted and implemented. We look forward to a new framework being established so that the cryptocurrency industry in Taiwan can become more transparent and secure."

Regarding competition among overseas operators, the BITO Group stated that after the FTX incident, Taiwanese users' awareness of and regulatory requirements for digital assets have significantly increased. BITO stands from the perspective of protecting users, believing that legality and compliance are basic requirements, demonstrating operators' responsibility and commitment to operating in the local market. Once a clear framework for cryptocurrencies is established, both domestic and foreign operators will have guidelines to follow, deepening international cooperation, and Taiwan has the opportunity to become a significant base for blockchain development in Asia.

HOYA BIT: Helps Operators Allocate Resources, Provides Compliant Products and Services

Exchange HOYA BIT stated that the Financial Supervisory Commission's regulatory guidelines for virtual assets are a significant benefit to local operators. HOYA BIT Exchange holds a supportive attitude because these guidelines provide operators with a clear direction for development. With a clear understanding of the government's policy direction, operators can more accurately allocate resources to create products and services that comply with government regulations. This not only prevents operators from heading in the wrong direction but also helps provide a healthier development environment for the entire virtual asset industry.

Facing competition from overseas operators, HOYA BIT believes, "Local institutions subject to strict government regulation clearly have higher security standards. For example, Taiwanese exchanges must have Taiwanese trust accounts at banks to protect users' Taiwanese assets. We sincerely hope that the government can work closely with local operators to further educate the public and encourage them to choose locally regulated exchanges to safeguard users' assets. However, HOYA BIT welcomes global exchanges to land in Taiwan. International exchanges, whether in resources or history, surpass local Taiwanese exchanges, which will undoubtedly have a significant impact on the survival of local Taiwanese exchanges. This also depends on whether the government considers supporting local exchanges in Taiwan or allowing the free market to compete freely. As a local exchange, HOYA BIT can only do its best within its capabilities to strive for user retention and transactions in Taiwan."