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 special feature of “Web3 Da Xi Jin” produced by “Web3”, the preparatory committee chairman and the first deputy director of the association, Xiao Huizong, and XREX co-founder and CEO Huang Yaowen, shared in-depth insights on the significance of the association’s establishment for the industry and regulation, as well as their experiences and thoughts along the way.
Compared to other countries, Taiwan has chosen a very unique approach of “self-regulation by operators” in the regulation of virtual currencies. The first priority task after the establishment of the association is to formulate the “self-regulatory norms,” but this does not mean that operators can do whatever they want.
Xiao Huizong, who has been the convener of the preparatory committee and the chairman of the preparatory committee, and has now been selected as the first deputy director of the association, shared that the probability of failure in emerging industries is very high, and the national conditions of each country are different. If the government invests a lot of resources from the beginning and the development of the industry does not meet expectations, it will be a waste of resources. It is better to let the industry develop on its own first, and gradually implement regulation through “external regulation” when it has a certain foundation and scale.
Further reading:
Taiwan Virtual Currency Association officially established! What is the next goal after the announcement of the list of directors and supervisors of the first term?
During the preparation of the association, there were also many challenges and setbacks. Xiao Huizong recalled that at the beginning, operators were unfamiliar with each other, and there were differences of opinion during the discussion of the initial version of the charter. Although all were for the public interest and with good intentions, the initial classification ideas and condition settings caused operators to oppose each other, and suitable legal grounds 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 Cai Yuling, the honorary chairman of the Taiwan FinTech Association, the legal basis for formulating the charter was found, which allowed the operators to reach a consensus and find a path for self-regulation that everyone was willing to follow. “Good laws can form an industry chain; bad frameworks and regulations can destroy an industry.” This is Xiao Huizong’s deepest insight and sentiment during the preparation process.
The Virtual Currency Association is composed of 24 founding members, divided into three categories (A, B, C) according to business types, and further classified into two levels (A and B) based on capital and number of employees, totaling six types of members. Xiao Huizong also shared the logic and spirit behind the classification in this episode.
At the end of the program, Huang Yaowen also shared his views on “appropriate and intelligent regulation.” He said that many countries actually envy Taiwan’s approach of allowing operators to self-regulate, as it can attract talent and provide positive assistance to the development of the industry and the expansion of Taiwanese operators abroad. What is his argument?
[Web3 Da Xi Jin] is hosted by XREX co-founders Huang Yaowen (Wayne) and Xiao Huizong (Winston), as well as Yoyo, the Senior Director of the XREX Executive Office, taking turns to host and help you understand the concept of decentralization and understand the Web3 world from different perspectives.
Summary of this episode:
The establishment of the “Virtual Currency Association” in Taiwan! What are the impacts and benefits for the development of the cryptocurrency industry?
Why did the Financial Supervisory Commission choose the approach of “self-regulation by operators” to regulate the virtual currency industry? Can operators do whatever they want?
Charter revision and collective opposition! What challenges did the preparation process of the Virtual Currency Association face, and how were they resolved?
The 24 founding members of the Virtual Currency Association are further divided into three categories (A, B, C) and two levels (A and B). What is the logic behind this classification?
What is considered as 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 content is a collaboration between XREX and “WEB3+”.