On Mar. 25, TAI FSC proposed rules re virtual asset service providers.
TAI FSC proposedVirtual asset service act to regulate virtual asset services, ensure sound market development, strengthen supervision, as well as protect users.
Follows TAI FSC Jan. 2025 published a number of policy priorities for 2025, #241290.
Proposal
Defines the act’s purpose, authority, key terms, innovation trials, global cooperation.
Act outlines the licensing requirements for virtual asset service providers (VASPs).
Including licensing requirements, operations type, business forms, naming rules, capital and guarantee deposits, qualifications for responsible persons and staff.
Sets out common management rules for all VASPs, covering internal controls, financial prudence, customer protection, asset custody, fiat handling, and disclosure obligations.
Sets specific rules for VASPs, covering exchange transparency, token listing, custody and outsourcing, offering disclosures; requires VASPs to join an industry association.
Defines TAI FSC’s authority over associations and outlines their functions, such as education and self-regulation; introduces licensing, framework for stablecoin issuers.
To maintain market integrity, the act prohibits fraud and manipulation, empowers TAI FSC with inspection and enforcement authority, and establishes rules for business exit.
Includes penalties for illegal activities, such as unlicensed operations, fraud, asset misuse, false documentation, provides for corporate liability, alternative penalties.
Consultation Period
Comment period for this consultation is open for 60 days, and closes on May 24, 2025.
