Taiwan Mobile, the nation’s second-largest telecom operator, has successfully obtained a Virtual Asset Service Provider (VASP) license from Taiwan’s Financial Supervisory Commission (FSC). This milestone paves the way for the company to establish a cryptocurrency exchange, leveraging its extensive resources and industry expertise.
Known locally as Taiwan Big Brother, Taiwan Mobile is the 26th entity to receive VASP accreditation. The company has been strategically positioning itself within the cryptocurrency sector for over a year. Reports from Bloomberg suggest that Taiwan Mobile had been considering acquiring an existing exchange to facilitate its entry. The VASP license was granted under the name Fusheng Digital, a subsidiary of Taiwan Mobile, both of which are led by CEO Lin Zhichen.
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Diverse and Regulated Domestic Industry
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Achieving VASP status required Taiwan Mobile to comply with stringent Anti-Money Laundering (AML) regulations. With these requirements met, the company is now eligible to join the self-regulatory Taiwan Virtual Asset Service Provider Association, established in June. The association, primarily composed of startups, stands to benefit significantly from the inclusion of a major player like Taiwan Mobile. Chairman Zheng Guangtai highlighted that the addition of such a well-resourced corporation will inject valuable experience and assets into the industry.
Evolving Crypto Regulation in Taiwan
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In mid-2023, the FSC took over the responsibility of regulating the cryptocurrency sector. By September, it had developed management guidelines for crypto businesses and barred foreign operators. A subsequent legislative proposal in October sought to enforce these guidelines through fines. Further regulatory tightening came in March, with the FSC planning to introduce a bill to enhance consumer protections. Additionally, the Justice Ministry proposed amendments to AML laws in May, imposing potential prison sentences for VASP-related violations.
In a notable collaboration, Binance worked with the Justice Ministry to resolve a significant money laundering case worth $6.2 million, leading to the indictment of nine individuals on charges including money laundering, fraud, and organized crime.
