The New Governor Found The Legal Solution For Bitcoin?
According to sources of the Focus Taiwan, at a discussion held by the Finance Committee of the Legislative Yuan, the new governor of the Central Bank of the Republic of China (Taiwan) Yang Chin-long, introduced new proposals on the legal regulation of bitcoin. It was the response to the lawmaker’s concern about insufficient transparency in trade.
We remind that Yang entered this position in February this year, and at the very beginning he directed his suggestion to put bitcoin under the framework of existing AMLs. Recall that a few weeks ago, the Finance Minister expressed the view that the cryptocurrency should be taxed as a commodity.
Virtual Currencies Are Easily Manipulated, says Yang
He pointed out that his agency is taking several measures in control and monitoring of bitcoins, and the guides for investors exist about possible risks in the decentralization of the currency. He also referred to the statement made by Finance Minister, Mr. Sheu on the taxation of Bitcoin.
At a press conference after the meeting, Yang pointed out that the markets of digital currencies are manipulative, extending the numbers of 87.5% Bitcoin transactions, which he claims, are owned by only 0.61% of the world’s market accounts. It is clear that all large financial organizations and major central banks have a negative attitude towards trade in virtual currencies such as Bitcoin, says Yang.
Thus, at this meeting, the main topic was the regulation of digital currencies by AML laws. Due to the inadequate constitutional regulation of the cryptocurrency, at this point, the Central Bank encourages the already existing rules of the Taiwan money laundering control to solve this problem. This proposal is submitted to the Ministry of Justice.
Is This Just Tracking Trends In The Region?
To increase the transparency of the market of cryptocurrency, Melesia has introduced KYC – know your customer rules, while in South Korea, the government, through similar laws, is struggling against anonymous accounts. Nevertheless, it is evident that the Central Bank of the Republic is determined to preserve the existing financial market order and that it is against the legalization of trade in cryptocurrencies.