Golden Finance reports that Taiwan’s financial regulatory authorities are set to hold a highly anticipated public hearing on the “Virtual Asset Services Act” on June 12th. This meeting focused on the discussion of regulatory policies in the virtual asset sector, with the regulation of stablecoins becoming the core topic.
It is learned that after in-depth research and careful assessment, regulatory authorities believe that stablecoins currently mainly serve as a medium of exchange in virtual markets. However, with the rapid development of the cryptocurrency market, if the usage scale of stablecoins continues to expand and their application scenarios keep expanding, especially when they are widely used in cross-border payment fields, it is highly likely to have an impact on the sound operation of the existing payment and financial systems. For instance, when a large number of stablecoins flood into the cross-border payment market, they may disrupt the business of traditional payment institutions, alter the pattern of capital flows, and thereby affect the stability of the financial system.
Therefore, regulatory authorities have proposed that stablecoins used for payment purposes should be subject to the same supervision as current electronic payments, strictly adhering to the principle of “same business, same risk, and same norms”. This principle aims to avoid regulatory arbitrage and prevent some market participants from taking advantage of the differences in various regulatory standards to obtain improper benefits. At the same time, it can also effectively prevent the occurrence of unfair competition phenomena and maintain a fair competitive environment in the market.
From a global perspective, many major countries and regions have successively begun to incorporate stablecoins with payment characteristics into their regulatory systems. Japan, Singapore and the United Kingdom, among others, have chosen to revise existing payment regulations to regulate stablecoins. The European Union and Hong Kong have strengthened supervision by enacting special laws. Although the United States does not yet have a unified regulatory framework at the federal level that is managed by each state independently, recently, both the House of Representatives and the Senate have respectively proposed regulatory frameworks for federal-level payment stablecoins. Under this international regulatory trend, Taiwan, China’s proposed move to adopt the same regulatory standards for stablecoins as for electronic payments is an important action in line with the global regulatory trend of stablecoins and to ensure the stable and healthy development of the local financial market.
The holding of this public hearing on the “Virtual Asset Services Law” marks an important step forward for Taiwan, China in the field of virtual asset regulation. The clarification of stablecoin regulatory policies will provide market participants with clear compliance guidance, promote the orderly development of the virtual asset market, and also help prevent potential financial risks and safeguard the legitimate rights and interests of financial consumers.
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