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Upcoming Regulatory Framework in Taiwan Sees Crypto Exchanges UniteIn preparation for the impending arrival of a regulatory framework for cryptocurrencies in Taiwan, nine prominent cryptocurrency firms have announced their collective efforts to establish an industry association.The nine exchange businesses announced the development via a press release which was published on Tuesday. The move comes in anticipation of Taiwan’s Financial Supervisory Commission (FSC) releasing comprehensive guidelines on cryptocurrency trading and payments by the end of September.Photo by Timo Volz on UnsplashDeveloping regulatory environmentThe industry body will include participation from native exchanges such as MaiCoin, BitoGroup, and ACE. While Taiwan has been behind the regulatory curve until now where crypto is concerned, the one measure that the FSC had already taken steps to mandate was that virtual asset services providers (VASPs) in Taiwan must adhere to the country’s anti-money laundering (AML) regulations. However, numerous other intricacies unique to the cryptocurrency industry still require careful consideration and regulation.Authorities in Taiwan have also put forward ten guiding principles for VASPs, designed to protect Taiwanese consumers.The forthcoming guidelines aim to address these concerns by introducing a comprehensive set of rules inspired by the VASP licensing framework in Hong Kong. One of the primary focuses of these proposed guidelines is consumer protection. They advocate for specific hot and cold wallet ratios for customer deposits with cryptocurrency exchanges, a measure designed to safeguard customer funds. Additionally, the guidelines suggest mandatory insurance against user losses to further enhance consumer confidence.Moreover, the FSC’s guidelines intend to prevent offshore cryptocurrency exchanges from operating onshore in Taiwan without proper compliance registration. This step aims to ensure that all participants in Taiwan’s cryptocurrency market adhere to uniform standards.In a bid to stabilize the Taiwanese financial system and prevent deceptive advertising practices, the guidelines also propose a ban on stablecoins linked to the Taiwanese dollar and impose restrictions on foreign exchange advertising within the country.Enabling self-regulationRegulators have also proposed the classification of crypto regulations within their own novel business category. As part of that initiative, officials expressed an interest in fostering self-regulation. The formation of this industry group could be deemed to be an encouraging sign relative to that aspiration.The nine cryptocurrency firms forming the industry association have established a working group led by Winston Hsiao, Co-Founder of XREX. This group aims to expedite the development of self-regulatory rules based on the forthcoming FSC guidelines.Wayne Huang, another Co-Founder of XREX, expressed his hope that the new FSC guidelines will provide the cryptocurrency industry with legitimacy, oversight, a clear growth trajectory, and an accelerated path to earn public trust.The formation of this industry association, coupled with the impending release of the FSC’s comprehensive regulatory guidelines, marks a significant milestone for Taiwan’s cryptocurrency sector. As the industry evolves, these proactive measures seek to ensure its stability, security, and compliance with international standards.

It’s been a tough couple of months for global crypto exchange, Bybit. Having had to leave the Malaysian market due to regulatory issues, the firm is now being forced to shutter its service in India for similar reasons.Photo by Naveed Ahmed on UnsplashWithdrawing services on January 12The exchange announced its withdrawal from the Indian market via a statement published to its website on Jan. 10. The service for Indian residents has been ceased from 08:00 UTC on Sunday, Jan. 12.  Account opening and crypto trading has been disabled. Furthermore, the ability to place market orders through other exchange products offered by the company has also been disabled. The ability for customers to withdraw fiat currency and digital assets remains in place. Achieving full complianceWhile the company is leaving the market, it has stated that its services are temporarily suspended in India. It cited a need to “operate in full compliance” as the firm’s primary objective relative to the Indian market. Elaborating on this, it stated:”We have taken this measure while we continue to work closely with the regulator to finalize our registration as a Virtual Digital Asset Service Provider in India, which we expect to secure in the coming weeks.” Malaysian market issueThe situation mirrors a similar set of circumstances that Bybit finds itself in relative to the Malaysian market. On Dec. 27, the Malaysian Securities Commission published a statement outlining details of an enforcement action it had taken against Bybit and the firm’s CEO, Ben Zhou.  In that instance, Bybit was directed to disable its service offering within the Malaysian market. The company indicated that it would return to the market once it had secured the necessary licensing. India hasn’t proven to be the most crypto-friendly jurisdiction to date. Indian crypto influencer R.K. Gupta took to the X social media platform, claiming that the government was at fault for Bybit having to withdraw from the Indian market. He stated: “Our country’s flawed policies are ruining crypto, while others aim for reserve currency status. Govt targeting exchanges, and now Bybit might stop services in India.” In December 2023, India’s Financial Intelligence Unit (FIU) took action to prevent unregistered overseas exchanges from operating within the Indian market. It issued compliance show-cause notices to nine exchanges at the time. Shortly afterwards, Apple India blocked access to these exchanges on the Indian Apple App Store.  While Bybit wasn’t amongst them, it is now being brought into line by Indian regulators. Back in September, it emerged that the FIU was considering requests to allow four offshore cryptocurrency exchanges to resume activity within the Indian market. Having been deemed to have come into compliance, Binance and KuCoin resumed activities in India in August 2024. Aside from Malaysia and India, Bybit has also encountered regulatory difficulties in Europe. Last August, it left the French market due to regulatory problems. In May 2022, the Autorité des Marchés Financiers (AMF), the French financial markets authority, blacklisted Bybit, warning investors that it wasn’t a registered digital asset service provider.  As part of that market withdrawal, Bybit collaborated with partner Coinhouse, a regulated French crypto-asset platform. Accounts holding assets above the value of 10 USDC were transferred to Coinhouse.

Indian police arrest eight more in $300M crypto scamIndian authorities have apprehended eight new individuals in connection with a sprawling $300 million (2500 crore Indian rupees) cryptocurrency scam that victimized approximately 100,000 people.According to a report published by local news media outlet The Times of India, the arrests have been made as part of an ongoing investigation. Of the eight individuals arrested, four have been identified as police officers.Photo by Big G Media on UnsplashLong running scamAs the investigation has unfolded, it has revealed an operation which is alleged to have been masterminded by Subhash Sharma, who remains at large. What has been termed the Himachal Pradesh crypto scam began to unravel in late September, although the Indian authorities believe that the origins of the scam stretch back to 2018.The perpetrators lured unsuspecting victims with investment schemes involving a local cryptocurrency known as Korvio Coin (KRO coins). As the scheme expanded, various other cryptocurrencies were introduced through fraudulent websites. One of these projects was abandoned after individuals had already invested, leading to significant financial losses.Targeting police officers and government officialsThe target audience for this particular scam has set it apart from that of others, given that police officers seem to have been involved while their colleagues are counted among the victims of the scam. Reports indicate that over 1,000 police personnel became entangled in the fraudulent web. While some officers were themselves victims, others made substantial gains. A few voluntarily took on the role of promoters, lending an air of credibility to the operation.Alongside police officers, 5,000 government officials also fell prey to the fraudulent investment schemes. The gravity of the situation became evident when it was revealed that around 56 complaints had been filed with police stations over the past two years.Multi-agency responseIn response to mounting concerns, multiple agencies, including the Enforcement Directorate and regional police teams, embarked on a comprehensive investigation under the guidance of a Special Investigation Team (SIT). The investigation has uncovered that over 100 individuals profited to the tune of $240,000 each, while another 200 reaped around $120,000 each from the scam.While the arrests have mounted to a total of 18 individuals, Sharma continues to evade capture. However, authorities have managed to identify and seize several properties associated with Sharma.In a separate investigation, the Enforcement Directorate is scrutinizing the roles of five women suspected of working as agents or promoters for the elusive kingpin. These developments underscore the vast extent of this crypto scam and the imperative for swift and thorough legal action.While crypto and Web3 more broadly have yet to fully unfold and reach full potential, there is no doubt that the sector has been blighted by ongoing scams, hacks and sharp practice. A recent report by Singapore-based blockchain security firm Immunefi estimated Q3 losses within the sector of $686 million.In August, a $120 million crypto ponzi scheme was uncovered in India’s Odisha state. Meanwhile, authorities in Hong Kong continue to come to terms with a fraud perpetrated by Dubai-based crypto exchange platform JPEX.As the investigation continues to unfold, the authorities are determined to bring all involved parties to justice, with a view towards sending a stern message to those who exploit unsuspecting individuals under the guise of cryptocurrency.