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Taiwan Proposes New Crypto Business CategoryWith regulation having trailed the crypto innovation, more recently it seems like every day brings further developments, with the latest installment seeing Taiwan take a significant step forward. Officials in Taipei are proposing the classification of crypto regulations within their own novel business category.Photo by Jack Brind on UnsplashFostering self-regulationThe move aims to potentially allow cryptocurrency-related companies to establish industry associations, ultimately fostering the creation of self-regulatory guidelines. The Ministry of Economic Affairs, in a recent announcement, unveiled its draft amendment to the Standards of Classification of Commercial Group regulations. This proposed amendment centers on the inclusion of a distinct category for digital asset services.An official from the economic ministry informed The Block that the freshly introduced business category outlines the scope of operations within the cryptocurrency sector. This encompasses various activities, such as cryptocurrency to fiat or digital token exchanges, facilitating cryptocurrency transfers, offering services for crypto storage and management, and providing assistance related to cryptocurrency issuance or sales.The official further elaborated that cryptocurrency firms will be permitted to form industry associations once the proposed business category is successfully incorporated into the relevant regulations. Seeking public input, the ministry anticipates finalizing the amendment in collaboration with the Ministry of the Interior in either mid- or late-October.Encouraging trade associationsBy allowing the establishment of industry associations, cryptocurrency companies can proactively devise self-supervisory rules that address industry-specific challenges and concerns. This move is anticipated to bolster transparency, security, and responsible conduct within the cryptocurrency ecosystem.Taiwan’s approach to virtual asset services providers (VASPs) has mandated compliance with anti-money laundering laws since the implementation of anti-money laundering regulations by the Financial Supervisory Commission in July 2021. However, the overall industry remains relatively unregulated within the country.Binance, the world’s largest cryptocurrency exchange, has recently embarked on the process of obtaining registration for anti-money laundering compliance under the FSC.Regulatory guidelines being draftedAs the regulatory landscape evolves, Taiwan’s FSC, which assumed its role as the principal regulator overseeing the crypto industry in March, is actively formulating comprehensive guidelines. These guidelines will cover trading and payment aspects associated with cryptocurrencies for VASPs.An FSC official revealed that the agency plans to unveil the VASP guidelines by the end of September. It’s understood that the guidelines will comprise thirteen regulatory principles. It’s believed that the issuance of crypto assets will be permitted but that stablecoin issuance will be prohibited. One prerequisite for the issuance of digital assets will be a requirement to accompany that issuance with a comprehensive whitepaper, detailing fundamental and necessary information that investors can review, relative to the token offering.Taiwan’s proposition of a novel business category signifies a pivotal move towards enhanced self-regulation and industry cohesion within the cryptocurrency sector. As the regulatory framework takes shape, the introduction of self-regulatory guidelines is poised to contribute to the responsible growth of the cryptocurrency industry in Taiwan.

Bithumb’s No-Trading-Fee Policy Proves Effective in Boosting User EngagementSince the recent introduction of a no-trading-fee policy for select cryptocurrencies, Bithumb, one of the leading cryptocurrency exchanges in South Korea, has experienced extended customer engagement on its platform.Increased user engagement and installationsOver the past week, the Bithumb app has witnessed growth in user engagement and installations. Both the average total time spent on the app and the average time spent per individual user have risen by nearly 20%. Additionally, there has been a 10% rise in the number of new app installs compared to the previous week.Photo by Mike Hindle on UnsplashTen new fee-free tokensIn this positive announcement today, the crypto exchange also revealed the addition of ten new virtual assets to its list of fee-free trading options. These newly added assets are SAND, AXS, BSV, QTUM, TFUEL, ANKR, T, KNC, STPT, and ONG. This brings the total number of fee-free trading assets on the exchange to 20.Customer engagement and trading volumeBithumb has demonstrated its commitment to making customers stay longer on its platform through various initiatives. Notably, the exchange, in late June, introduced Insight, a service that provides crypto investors with metrics to help them make informed decisions. The company believes that bolstering customer engagement will drive growth in the exchange’s trading volume.Bithumb, recognizing the positive impact of its zero trading fee policy on customer retention, internally saw this achievement as a successful step towards delivering tangible benefits to its users through an optimized trading environment.Since the beginning of the month, the exchange has been unveiling a weekly lineup of fee-free tokens, accompanied by a no-fee BTC market. These fee-free tokens are easily identifiable with a blue badge and can be conveniently sorted by clicking the “fee-free” tab at the top of the chart.Moon Sun-il, the Head of Services at Bithumb, emphasized the company’s commitment to noticeable user experience enhancement. Moon highlighted the recent implementation of the no-trading fee policy and the introduction of the trading data service, Insight, as key initiatives driving towards this goal.

The Dubai Court of First Instance in the United Arab Emirates (UAE) has notched up another milestone relative to the continuing rollout of the use of and legal status of cryptocurrency by recognizing crypto as a legitimate means of payment where salaries are concerned. The groundbreaking decision, which was revealed in the court via case number 1739 of 2024, gives confirmed legal recognition to the validity of crypto as a means of payment for salaries, which may be stipulated in an employment contract.Photo by David Rodrigo on UnsplashRuling reflecting a progressive approach to cryptoThe outcome hit the radar of a number of crypto-centric UAE-based lawyers, with Web3 lawyer Irina Heaver, a partner at NeosLegal, pointing out that the decision marks a shift from previous relevant case law in the UAE in 2023 when a similar set of circumstances led to crypto not being recognized for the purposes of salary payment. Commenting on the ruling of that previous case, she stated: “This decision reflected a traditional viewpoint, emphasizing the need for concrete evidence when dealing with unconventional payment forms.” Ecowatt (EWT) tokensIn this latest case, the circumstances revolved around a dispute whereby an employee claimed for unpaid salary, termination compensation and further benefits. The employee’s contract of employment outlined a payment in both fiat currency, alongside 5,250 Ecowatt (EWT) tokens.  Ecowatt is a renewable energy blockchain project which claims to serve a purpose in reducing carbon impact on a global basis through the tokenization of green energy. It was the failure of the employer to pay out the tokenized portion of the employee’s salary that led to the dispute and the subsequent lawsuit. The court ultimately sided with the employee, agreeing that the employer must fulfill its contractual obligation and pay out the remainder of the employee’s salary and benefits in Ecowatt tokens. The judgement stated: “As the respondent did not provide evidence of payment in EcoWatt tokens, the court orders the respondent to pay the claimant the value of her wages in EcoWatt tokens.” In weighing up this latest adjudication, Heaver concludes that the move is congruent with the progressive approach that is being taken to digital assets within the UAE. “This decision reflects a broader acceptance of cryptocurrency in employment contracts and highlights the court’s recognition of the evolving nature of financial transactions within the Web3 economy,” she stated. Mahmoud Abuwasel, partner at Wasel & Wasel, an international firm with a presence in Abu Dhabi, also noted the relevance of the ruling, posting on the matter on legal update database, Lexology.  Greater legal clarityLittle by little, greater clarity is emerging in jurisdictions worldwide with regard to the status of cryptocurrency and digital assets within the context of international legal systems. In 2023, a Chinese court recognized virtual assets as legal property, affirming the legal status of virtual assets as protected property under Chinese law.Earlier in 2023, the courts in the Chinese autonomous territory of Hong Kong determined cryptocurrency to be property “capable of being held in trust.” Not all decisions have been positive however, with a Singaporean court determining in April 2023 that crypto is not money, albeit that the judge did acknowledge that the matter would require a more detailed examination of evidence in another court.