Virtual Currency Association Established! Is the Association’s Charter the Key?
The “Virtual Currency Association” in Taiwan was officially established on June 13th! In the “Web3 Da Xi Jin” special program on virtual associations, the Association’s Chief Preparatory Committee Chairman, and the first Deputy Director-General, Xiao Hui-Zong, and XREX Co-founder and Group CEO, Huang Yao-Wen, shared in-depth insights on the significance of the association’s establishment for the industry and regulation, as well as their experiences along the way.
Compared to other countries, Taiwan has chosen a unique approach to virtual currency regulation by opting for “self-discipline by operators.” The first priority task after the establishment of the association is to formulate the “self-discipline guidelines.” However, this does not mean that operators can do whatever they want.
Xiao Hui-Zong, who has been the convener of the association’s preparatory group and the chairman of the Chief Preparatory Committee, and now elected as the first Deputy Director-General of the association, shared that the probability of failure in emerging industries is very high, and each country’s situation is different. If the government invests a large amount of resources from the beginning and the industry’s development does not meet expectations, it would be a waste of resources. It would be better to let the industry develop on its own first and gradually establish regulation through “external control” when there is a certain foundation and scale.
Further reading:
Taiwan Virtual Currency Association Officially Established! What is the Next Goal?
During the process of preparing for the association, there were many challenges and obstacles. Xiao Hui-Zong recalled that in the beginning, the operators were unfamiliar with each other, and there were differences of opinion during the discussion of the initial charter. Although all intentions were for the public interest, some initial classification ideas and condition settings caused conflicts among operators, and suitable legal sources could not be found.
Later, with the guidance and assistance of the Ministry of the Interior, the charter was formulated based on the logic of the “Taiwan People’s Group Election and Recall Act.” With the help of Tsai Yu-Ling, the Honorary Chairman of the Taiwan FinTech Association, the legal basis for the charter was found, which allowed the operators to reach a consensus and find a path for self-discipline that everyone was willing to follow. “Good laws can form an industry chain; bad frameworks and regulations can destroy an industry.” This is the most profound insight and sentiment that Xiao Hui-Zong gained during the preparatory process.
The Virtual Currency Association is composed of 24 founding members and is divided into three categories, A, B, and C, based on business types. It is further categorized into two levels, A and B, based on capital and number of employees, resulting in a total of six types of members. Xiao Hui-Zong also shared the logic and spirit behind the classification in this episode.
At the end of the program, Huang Yao-Wen shared his views on “appropriate and intelligent regulation.” He stated that many countries actually envy Taiwan’s approach of allowing operators to self-discipline, as it allows for consensus among operators and more stable industry development before enacting specific laws. This approach will have positive implications for attracting talent and Taiwanese operators going abroad.
【Web3 Da Xi Jin】 is hosted by XREX Exchange’s Co-founders, Huang Yao-Wen Wayne and Xiao Hui-Zong Winston, as well as Yoyo You, Senior Director of the XREX CEO Office. They bring you an understanding of the concept of decentralization and help you understand the Web3 world from various perspectives.
Summary of this episode:
Taiwan’s “Virtual Currency Association” has been officially established! What impact and help does the establishment of the association have on the development of the cryptocurrency industry?
Why did the Financial Supervisory Commission choose the approach of “self-discipline by operators” to regulate the virtual currency industry? Can operators do whatever they want?
The process of preparing for the association faced many challenges and even encountered collective resistance. What were the obstacles encountered during the preparatory process of the Virtual Currency Association, and how were they resolved?
The 24 founding members of the Virtual Currency Association are further divided into three categories, A, B, and C, and two levels, A and B. What is the logic behind this classification?
What is considered appropriate and intelligent regulation? How can the public and private sectors cooperate to make regulation of new industries and technologies possible?
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Music Source:
MusicbyAden – Earth
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Earth by MusicbyAden is licensed under CC BY-SA 4.0CC
This episode is a collaboration between XREX and “WEB3+.”
