Virtual Currency Association Established! Is the Association’s Charter Key?
The “Virtual Currency Association” in Taiwan was officially established on June 13th! In the “Web3 Da Xi Jin” program’s special feature on virtual associations, the Director of the Association Preparatory Committee and the Vice Chairman of the First Council, Xiao Huizong, as well as the Co-founder and CEO of XREX, Huang Yaowen, shared their insights on the significance of the association’s establishment for the industry and regulation, as well as their experiences along the way.
Compared to other countries, Taiwan has chosen a very unique approach to regulating virtual currencies, known as “self-regulation by industry players.” The first priority after the establishment of the association was to develop a “Code of Conduct,” but this does not mean that industry players can do whatever they want.
Xiao Huizong, who has been the convener of the association’s preparatory team and the Director of the Association Preparatory Committee, and is now selected as the Vice Chairman of the first council, shared that the probability of failure in emerging industries is very high, and each country’s situation is different. If the government invests a large amount of resources from the beginning and the industry’s development does not meet expectations, it would be a waste of resources. It is better to let the industry develop on its own first, and gradually implement regulation through “external regulation” when there is a certain foundation and scale.
Further reading:
Taiwan’s Virtual Currency Association officially established! What is the next goal after the announcement of the first board of directors?
During the preparation of the association, there were also many challenges and obstacles. Xiao Huizong recalled that in the beginning, the industry players were unfamiliar with each other, and there were disagreements during the discussion of the first version of the charter. Although all the intentions were for the public interest and were well-intentioned, the initial categorization ideas and conditions set caused the industry players to confront each other and even struggle to find appropriate legal basis.
Later, with the guidance and assistance of the Ministry of the Interior, the charter was formulated based on the logic of the “Taiwan People’s Group Election and Recall Act,” and with the help of Cai Yu-ling, the Honorary Chairman of the Taiwan FinTech Association, the legal basis for the charter was found, allowing the industry players to reach a consensus and find a path for self-regulation that everyone was willing to take. “Good laws can help form an industry chain, while a poor framework and regulation can potentially destroy the industry.” This is Xiao Huizong’s most profound experience and sentiment during the preparation process.
The Virtual Currency Association consists of 24 founding members, categorized into three types A, B, and C according to their business types, and further divided into two levels based on capital and employee numbers, totaling six types of members. Xiao Huizong also shared the underlying logic and spirit behind the categorization in this episode.
In the end, Huang Yaowen shared his views on “appropriate and intelligent regulation.” He expressed that many countries actually envy Taiwan’s approach of allowing industry players to self-regulate, as it allows industry players to reach a consensus and achieve more stable industry development before enacting specific laws. This will have positive effects on attracting talent and helping Taiwanese industry players expand internationally. What is his argument?
【Web3 Da Xi Jin】 is hosted by Wayne Huang and Winston Xiao, the co-founders of XREX Exchange, and Yoyo You, the Senior Director of XREX’s CEO Office. They guide you to understand the concept of decentralization and help you understand the Web3 world from various perspectives.
Summary of this episode:
The establishment of the “Virtual Currency Association” in Taiwan! What impact and assistance does it have on the development of the cryptocurrency industry?
Why did the Financial Supervisory Commission choose the approach of “self-regulation by industry players” to regulate the virtual currency industry? Can industry players do whatever they want?
Starting from scratch with the charter and facing collective opposition! What challenges did the Virtual Currency Association encounter during its preparation, and how were they resolved?
The 24 founding members of the Virtual Currency Association are further divided into three categories: A, B, and C, as well as two levels: A and B. What is the logic behind this categorization?
What is appropriate and intelligent regulation? How can the public and private sectors cooperate to make regulation of new industries and technologies possible?
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Music source:
MusicbyAden – Earth
Download: Musicbyaden – Earth
Earth by MusicbyAden is licensed under CC BY-SA 4.0CC
This segment is jointly produced by XREX and “WEB3+.”