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Breaking News: Taiwan to Recognize Bitcoin as Legal Tender

source-logo  crypto-news-flash.com 01 November 2023 07:19, UTC
  • Taiwan is working on a Bill that may lead to the recognition of Bitcoin as legal tender.
  • The country is bolstering its footprint in the crypto ecosystem as shown in a recent IOTA collaboration.

In a recent development, Taiwan has officially announced its intention to recognize Bitcoin (BTC) as a legal tender. This bold move, the first of its kind in Asia, is set to have a profound impact on the global crypto market and is bound to spark conversations about the future of digital currencies in the region.

Taiwan Proposes Crypto Act

Taiwan, a nation known for its technological innovation and progressive outlook, is taking significant strides as it concerns crypto regulation. On October 27, Taiwan’s legislative body formally proposed a draft crypto act for discussion. If this draft is passed into law, it could take effect as soon as next year, ushering in a new era of regulatory clarity in the world of digital assets.

The proposed crypto act was approved at the first reading in Taiwan’s Parliament, known as the Yuan. The new regulations are aimed at addressing various challenges, including concerns about money laundering and consumer protection. Customers who hold digital assets offshore will not have the same level of protection as those using domestic exchanges, as offshore exchanges do not need to adhere to Taiwan’s regulations.

The Financial Supervisory Committee (FSC) is expected to submit its version of the bill soon. If the bill becomes law, all crypto exchanges operating in Taiwan will be required to apply for a license to transact in digital assets. Failure to comply could result in government authorities ordering them to cease operations.

Meanwhile, the second reading of the bill is expected to occur around the end of January 2024. In the meantime, it remains legal to invest in cryptocurrencies in Taiwan. The proposed legislation seeks to make digital asset use more secure, safer, and transparent. It appears that there is overwhelming public support for these regulations in Taiwan.

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The move towards crypto regulation is part of a global trend. Bitcoin adoption is on the rise, with the Central African Republic becoming the second country, after El Salvador, to make Bitcoin a legal tender. This move is seen as a strategy to attract investments and promote economic recovery in the country.

Taiwan’s Technological Ambitions

Taiwan, renowned as a global semiconductor hub, is also actively exploring innovative projects related to decentralized identity solutions. Recent discussions with IOTA highlight Taiwan’s efforts to enhance the security and protection of its citizens. IOTA’s decentralized ID solutions have been a focal point of these discussions.

It’s clear that Taiwan is keen to embrace technological advancements and regulatory frameworks that align with the global shift toward digital assets. As Taiwan continues to evolve its stance on crypto and collaborate with leading blockchain projects, it positions itself as a leader in the ever-evolving landscape of digital finance and technology.

As the world watches the developments in Taiwan, the country’s Crypto Act could become a blueprint for other nations seeking to strike a balance between innovation and regulation in the cryptocurrency space.