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Binance Initiates Registration Process for AML Compliance in TaiwanGlobal crypto exchange Binance has set in motion the process of registering under Taiwan’s Money Laundering Control Act, the sole crypto-related regulatory framework currently established in Taiwan.In a confidential gathering on Tuesday, Taiwan’s Financial Supervisory Commission (FSC) conveyed to numerous domestic crypto service providers that Binance is in the process of applying for registration to ensure compliance with anti-money laundering (AML) regulations, according to a local media report.Photo by Thomas Tucker on UnsplashImportance of AML complianceTaiwan has mandated that virtual asset service providers (VASPs) adhere to its anti-money laundering statutes since the FSC introduced AML rules in July 2021. Outside of these measures, the cryptocurrency industry in the country remains largely unregulated.Speaking to The Block on Friday, an FSC official refrained from confirming whether Binance had already submitted the necessary documentation to register with the regulatory body. However, the official did emphasize the importance of offshore crypto platforms operating in Taiwan abiding by the local AML regulations.While Binance is not yet regulated in Taiwan, it has established a local entity named “Binance International Limited Taiwan Branch (Seychelles),” as per records from the Department of Commerce’s database. The registration particulars indicate that the Taiwanese government endorsed Binance’s company registration on May 12, 2023, with a registered capital of NT$30 million ($944,000) within Taiwan.Cooperation with law enforcementBinance has taken steps to cooperate with local law enforcement agencies to combat cybercrime in Taiwan. In June, the exchange revealed its collaboration with Taiwan’s Criminal Investigation Bureau, leveraging its expertise to assist over 200 Taiwanese law enforcement officers in addressing digital asset-related criminal activities.Damien Ho, Head of Global Partnerships at Binance, remarked in a blog post at the time:“As an increasing number of individuals in Taiwan show interest in cryptocurrency, ensuring a secure and comfortable crypto ecosystem for users becomes crucial.”Growing Asian influenceBinance’s influence is growing across Asia. This month, it officially launched operations in Japan after its acquisition of the local exchange Sakura Exchange BitCoin in November 2022, paving the way for regulatory oversight by the Japan Financial Services Agency (JFSA). Earlier this month, an investigative report carried out by the Wall Street Journal revealed that Binance is thriving in China in spite of the fact that crypto trading is a banned activity there.Regulatory guidelines anticipatedTaiwan’s FSC, which assumed the role of the primary regulator overseeing the crypto industry in March, is currently formulating comprehensive guidelines for trading and payments involving cryptocurrencies for VASPs.The FSC has disclosed plans to release the VASP guidelines by the end of September. Kevin Cheng, a Director at the Taiwan Fintech Association, revealed that the FSC intends to implement a stringent regulatory approach for crypto platforms in Taiwan, similar to its oversight of traditional financial institutions.Cheng noted: “The FSC plans to require VASPs to keep their own crypto assets separate from the clients’ crypto assets and to have accounting firms audit such assets every year.” However, Cheng highlighted the potential difficulty of this requirement, as many accounting firms might hesitate to serve crypto clients due to the specialized nature of crypto-related information.

Wemade to Participate as Main Sponsor in G-STAR 2023South Korean blockchain game developer Wemade will participate as the main sponsor in this year’s G-STAR 2023, the global game exhibition to take place from November 16 to 19 in the southern port city of Busan. This marks the company’s second consecutive year as a main sponsor of the event, highlighting its commitment to promoting Korea’s rapidly growing global blockchain gaming market.“We hope that G-STAR will mark a turning point for Wemade as a blockchain pioneer in the domestic gaming market,” said Henry Chang, the company’s CEO.Leading the future of gamingAt the exhibition’s B2C section, Wemade will unveil its upcoming releases set to enter the global market via WEMIX PLAY, its blockchain gaming platform. The developer said it will showcase games including the MMORPG “Legend of YMIR,” which is currently in the works at Wemade’s extended reality subsidiary Wemade XR, and the baseball game tentatively titled “Round 1 Baseball” under development by Round 1 Studio, which Wemade will publish.Photo by Jack B on UnsplashWemade also plans to participate in discussions regarding potential collaboration opportunities with other domestic and international gaming and blockchain companies in the B2B section.CEO Chang is set to deliver the opening keynote speech at G-CON 2023, a conference to be held at the exhibition, on November 17 at 10 AM. He will present his insights into the future vision for the blockchain gaming market.Moreover, various outdoor events are being prepared to create a festive atmosphere for visitors to enjoy throughout different areas of Busan.Wemade plans to publish an online page for G-STAR 2023 to provide detailed information about their showcased works and general details about the event.Success storyNotably, at last year’s G-STAR, Wemade unveiled “Night Crow,” — an MMORPG made by Madngine, a game-developing company that Wemade invested in this year — which drew the attention of the attendees. The game has since topped popularity and sales rankings following its domestic release in April. A blockchain version of the game utilizing tokenomics is also set to launch in the global market at the end of this year.

Taiwan to review crypto ETFs amid developments overseasThe Financial Supervisory Commission (FSC) in Taiwan has disclosed its close examination of foreign cryptocurrency futures products and exchange-traded funds (ETFs), signaling a potential shift in its regulatory approach.According to a report in Chinese-language financial newspaper, Taiwan’s Commercial Times, the FSC aims to gradually ease restrictions, aligning its stance with global market conditions.Photo by bordercollie 1712 on UnsplashResponding to crypto ETF activity internationallyThe Taiwanese regulator is carrying out this exploration against the backdrop of significant global developments. The possibility of the Federal Reserve cutting interest rates and the upcoming review by the U.S. Securities and Exchange Commission (SEC) of the spot bitcoin ETF in January next year are key factors influencing the FSC’s considerations.The anticipation surrounding the Bitcoin halving in April, combined with speculation that a spot bitcoin ETF approval is imminent in the U.S., have contributed to a 145% surge this year in Bitcoin’s unit price, adding momentum to that regulatory contemplation in Taiwan. There has been speculation that BlackRock, the world’s largest fund manager, is already preparing for the approval of its iShares Bitcoin Trust ETF.Recognizing the potential impact of a Bitcoin index stock fund, contingent on SEC approval and subsequent public investment permission, the FSC is closely monitoring global trends.Closer to home, it emerged last month that Hong Kong’s Securities and Futures Commission (SFC) is actively exploring the possibility of permitting retail participation in a spot crypto ETF. Domestic investment banks in Taiwan, attuned to these developments, have expressed longstanding interest in introducing similar crypto products.The FSC draws parallels with global counterparts, citing the proliferation of cryptocurrency futures products and ETFs in various markets.Cautious regulatory reviewAdopting a phased approach, the FSC emphasizes self-discipline and standards in relaxing regulations around crypto ETFs. This cautious strategy aligns with Taiwan’s historical prudence, previously observed in the delayed approval of cryptocurrency ETFs and blockchain ETFs due to concerns over volatility and speculative nature.As Taiwan contemplates a significant move into the cryptocurrency ETF domain, industry players remain cautiously optimistic. While some had considered private placements for overseas cryptocurrency ETFs, challenges such as tightened regulatory supervision and concerns over errors and price lags prompted a reevaluation.Earlier this month, ETF issuer ProShares launched its short Ether-linked ETF product on the New York Stock Exchange’s Arca, using the ticker symbol SETH. Spot bitcoin ETFs have been launched in Canada, Germany, Australia and Brazil. The products have also been made available via tax havens such as the Cayman Islands, Jersey, Liechtenstein and Guernsey.The regulator in Taiwan hints at a potential strategy involving “cryptocurrency concept ETFs.” These funds could invest in cryptocurrency-related software and hardware vendors, offering investors exposure to the industry without direct linkage to cryptocurrency price fluctuations.