The rise of cryptocurrencies and their broad applicability in
international trade and finance have inspired some in Taiwan, most
vocally legislator-at-large Jason Hsu, to take a closer look at how
they can be integrated into the government's goals of promoting
technological innovation and investment. However, differing
opinions from legislators, government agencies and industry has
meant that while cryptocurrencies have been a hot topic of late,
there is still a lack of clear policy direction and no legislation
governing these new technologies.
The current legal situation
Cryptocurrencies are considered a "virtual commodity"
by the Taiwanese government and are essentially unregulated. The
Banking Act and the Securities and Exchange Act, do however provide
penalties for issuers who violate articles in either law. In light
of this, many issuers abroad have blocked or prevented people in
Taiwan purchasing currencies through ICOs to avoid criminal
liability.
