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Taiwan is planning to introduce a new cryptocurrency regulatory framework later this year as it follows similar measures taken by other neighbouring countries.

Located in East Asia, with the People’s Republic of China, Japan, and the Philippines nearby, Justice Minister Qiu Taisan has called for a new cryptocurrency framework to be put into place by November, reports the Asia Times. According to the report, money laundering prevention is the reason.

The Taiwan News Agency states that the intention is for Taiwan’s central bank, the Central Bank of the Republic of China, and its Bureau of Investigation, to figure out how to regulate digital currencies such as bitcoin.

AT reports that Gu Lixiong, Chair of the Financial Supervision and Management Commission, said that the control of cryptocurrencies would be focused on to prevent money laundering. The country’s Financial Services Coalition (FSC) has also asked banks to label bitcoin accounts as ‘high-risk clients’ as part of its anti-money laundering (AML) regulations.

Last September, Chinese authorities took measures to crackdown on the cryptocurrency market by outlawing trading practices in the country. Once considered a nation that held a majority of trading platforms, many have either moved offshore or shut down. With Taiwan located close to China it’s possible that many digital currency companies moved to the small island nation.

Notably, though, while the country is planning to introduce a new cryptocurrency regulatory framework later this year, that doesn’t necessarily mean it will be taking a hard line approach similar to China. Taiwan is still relatively neutral regarding the digital currency market.

Last year, Wellington Koo, Taiwan’s Financial Supervisory Commission chair, said to parliament that it didn’t have any intention of following in China’s footsteps with an outright ban, according to a report from Forbes. Of course, with the new framework expected it remains to be seen what impact it will produce on the market in Taiwan.

Image from Shutterstock.
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