The Virtual Currency Association of the Republic of China (VCAROC) was officially established on August 13th. The inaugural board of directors and supervisors were elected, with Cheng Kuang-tai, the co-founder and CEO of BitoPro, being elected as the first chairman of the association. Meanwhile, Hsiao Hui-tsung, the co-founder and group revenue officer of XREX, was elected as the first vice chairman. This marks an important milestone in the development of the cryptocurrency industry in Taiwan.
In September 2023, the Financial Supervisory Commission (FSC) officially announced the “Guidelines for the Regulation of Virtual Asset Service Providers (VASPs)”. The Ministry of Economic Affairs also revised the standards for business associations, adding a new category for “virtual currency businesses”. This signifies Taiwan’s official recognition of the regulatory issues surrounding the cryptocurrency industry.
According to the FSC’s schedule for regulating the cryptocurrency industry, there are four stages: the regulation of VASPs, the establishment of associations and self-regulatory norms, differentiated management and legal reinforcement, and the formulation of specialized laws. Taiwan has now officially entered the second stage.
The focus of the second stage is to promote the establishment of the association for VASPs and to develop industry self-regulatory norms based on the guidelines set by the FSC. The association has been officially established, and the first board of directors and supervisors for the Virtual Currency Association have been elected. The association will now begin discussions on self-regulatory norms with great enthusiasm.
Here is the list of the first board of directors and supervisors for the Virtual Currency Association:
Chairman:
Cheng Kuang-tai – Co-founder and CEO of BitoPro
Vice Chairman:
Hsiao Hui-tsung – Co-founder and Group Revenue Officer of XREX
Executive Directors:
Wu Te-wei – Director of Binance Taiwan
Wang Shih-chieh – CEO of BitoDig
Lee Tung-yueh – CEO of Summer & Co.
Lee Kuo-jung – CEO of CoinAge
Kuo Chang-hsun – General Manager of Hong Zhu Digital
Chen Chien-ming – Company Representative of Yilufa
Huang Guan-sheng – Company Owner of Yin Tianxia International Consulting
Liu Shih-wei – Founder and CEO of Modern Wealth Tech
Su Chien-ying – CEO of Krosslink
Alternate Directors:
Yang Shu-hui – COO of Zhi Jing
Executive Supervisors:
Peng Yun-hsien – Founder and CEO of Hoard
Supervisors:
Ho Kuan-yen – Operations Manager of Yang Jia
Su Hsiu-ping – Representative of SunFaster
Alternate Supervisors:
Hsieh Meng-che – Chairman of Wo Heng Technology Taiwan Branch
The Future Goals of the Virtual Currency Association:
The Virtual Currency Association is a “regulatory-oriented” association established in accordance with the FSC’s “Guidelines for the Regulation of Virtual Asset Service Providers (VASPs)”. It serves as the only direct communication channel between the industry and the government.
The primary task after its establishment is to formulate “self-regulatory norms” and implement the classification and categorization management of operators, creating an upstream and downstream industry chain and ecosystem. While taking care of the interests of operators and the development of the industry, the association also aims to meet the expectations of the government and protect consumer rights. The Virtual Currency Association has great confidence in this and will prove the practicality and conformity to societal expectations of operator self-regulation through substantial achievements.
During the preparatory stage, the Virtual Currency Association has already begun working with the Ministry of Justice and various units to establish anti-fraud, anti-money laundering, and joint defense mechanisms. This work will continue in the future to contribute industry technology to law enforcement, significantly reducing industry risks and negative events, removing the stigma from the industry, and establishing a clean, safe, and sustainable industrial environment. The formulation and implementation of the “self-regulatory norms” will be the solid foundation to achieve this goal.
Former Deputy Minister of the Executive Yuan and current Honorary Director of the Taiwan FinTech Association, Tsai Yu-ling, has been guiding and supporting the establishment of the association and serves as the chief advisor since September last year.
Tsai Yu-ling said that there were many doubts from the public during the establishment of the association, but with the opportunity for operators to self-regulate given by the regulatory authorities, operators should cherish the goodwill of the regulators and unite instead of blaming each other, setting an example for an innovative regulatory model.
Huang Hsi-ho, Chief of the Securities and Futures Bureau of the FSC, also mentioned in his speech that the FSC attaches great importance to the development of the virtual asset industry. The establishment of the association will bring more cooperation and consensus to the industry, promoting lawfulness, standardization, and healthy development to ensure the safety, transparency, and stability of the industry and enhance the protection of consumer rights.
He also emphasized that the FSC will strengthen cooperation with the Virtual Currency Association in the future, working together to enhance customer rights protection, improve the industry’s reputation and image, and promote the sound development of the industry.