The seventh largest Asian economy in Taiwan has pursued amicable regulation for the crypto and blockchain companies, as the government recognized the potential of blockchain technology in supporting the country's economic growth.
This year, Malta, described as "Blockchain Island", "Has set a new trend in implementing favorable policies for cryptor startups to expand the cryptocurrency market." In a few months, Binance and Bittrex, two of the world's largest multi-billion dollar digital asset exchanges have moved to Malta.
The forward-looking approach in the regulation of Malta has led major cities in South Korea, Japan and Europe to adopt similar regulatory frameworks for attracting cryptocurrency companies
Taiwan is the next big market
The Taiwanese government has not drafted or approved any official legislation regarding cryptocurrency and the legislative blockchain.But, led by Congressman Jason Hsu, government officials and the major cryptocurrency companies have created the Taiwan Crypto Blockchain Self-Regulatory Organization (TCBSRO), to establish quality standards and practices
Similar to Busan and Jeju Island in South Korea, Taiwanese government officials have taken an early approach to self-regulation of the local cryptocurrency and the blockchain sector to streamline the regulatory market process for the government.
For many years, Taiwan has been criticized by the international technology industry for its lack of regulations in the fintech and technology markets. Unlike Japan, which recognized its weakness in the technology and fintech area, the Taiwan government has struggled to embrace emerging and disruptive technologies.
But, the approval of the law on innovations and financial technology experiments, which allows blockchain and crypto startup operate for years without regulatory risks, marked the first important step towards the practical regulation in the fintech in the history of the country, which it could accelerate the process of passing a potential crypto and blockchain regulatory framework in the near future.
Hsu, the crypt – a member of the Taiwan Congress, held discussions with the world's largest cryptocurrency companies, including Binance, to ensure that the local cryptocurrency sector can continue to grow rapidly thanks to approval and support from the government.
proud to announce the launch of #Taiwan Parliamentary Coalition for #Blockchain and in dustry #SRO Together we will promote healthy growth of the ecosystem and progressive regulations #cryptocurrency . Let's Taiwan #blockchainisland and #CryptoNation pic.twitter.com/wHiFDW8vwI
– jason Hsu (@augama) May 23, 2018
Crypto will be useful for Taiwan
Japan and South Korea, the second and fourth largest Asian economy, have seen an exponential growth of their respective cryptocurrencies and blockchains, mainly due to the implementation of friendly regulatory frameworks.
As NewsBTC previously, the Financial Services Agency (FSA) has recently expanded its crypto team to ensure it can meet the growing demand for cryptocurrencies from local businesses.
In addition, as Leo Lewis, a Tokyo correspondent for FT and a Japan-based financial analyst said Nobuchika Mori, Japan's longest-serving finance minister and an FSA regulator, continued to seek regulation open in the cryptocurrency and in the financial sector.
"Mr. Mori knew, intimate that the Japanese financial sector had lagged behind in IT, fintech, blockchain and in its general embrace of the digital." Faced with an emerging and exciting genre that had already captured the imagination of the Japanese public, must have been tempted to overlap to encrypt a load of pre-existing national ambitions focused on technology start-ups, fintech and encouraging more retail money per flow around the system, "explained Lewis.
Analysts expect Japan, South Korea and Asia's major economies to standardize regulatory frameworks to bring Taiwan, India and other countries to uncritical cryptocurrency policies to consolidate their position on emerging technology.