The Ministry of Economic Affairs revised the standards for business groups, allowing Taiwan's virtual currency operators to form associations.

The Financial Supervisory Commission (FSC) of Taiwan will announce the draft guidelines at the end of September, with a major focus on requiring Taiwan's virtual currency operators to form their own association and establish self-regulatory rules to comply with the guidelines. The Ministry of Economic Affairs has announced plans to amend the standards for commercial organizations, paving the way for the formation of industry associations.

Background: Exclusive | Interpreting the draft guidelines of Taiwan's FSC

Establishment of "Virtual Currency Business" Category

The Ministry of Economic Affairs announced today that it will revise the business group classification standards and add the "Virtual Currency Business" category and its corresponding business scope. Officials from the ministry stated that this move is aimed at allowing eligible virtual currency businesses to formally apply to form an association two months after the end of the public notice period for the draft revision.

Definition of Virtual Currency Business Activities

The draft revision provides a clear definition of the business scope of virtual currency businesses. These activities include: operating the exchange between virtual currency and legal tender or other virtual currencies, providing services for the transfer and custody of virtual currencies, and participating in and providing services related to the issuance or sale of virtual currencies. However, the draft revision clearly states that digital forms of New Taiwan Dollar, foreign currencies, as well as currencies issued by mainland China, Hong Kong, or Macau, securities with value, and other legally recognized financial assets are not included in the scope of virtual currencies.

Establishment of Association and Application Process

The Ministry of Economic Affairs further pointed out that according to the Ministry of the Interior's Business Association Law, the revised "Business Group Classification Standards" will be officially announced and implemented two months after the revision. It is worth noting that virtual currency businesses have been classified by the Financial Supervisory Commission as a sector that needs to implement anti-money laundering measures. If businesses can successfully form an association, they can not only ensure compliance with relevant laws and establish self-regulatory norms but also cooperate with government policies. As for the association establishment process, it requires at least five businesses to jointly apply to the Ministry of the Interior, and only after evaluation by the competent authorities and local governments can the association be formally established. In addition, newly established business associations also have the opportunity to join the General Chamber of Commerce to enhance their influence within the industry.