Taiwan is a hotbed for cryptocurrency mining. With its abundance of renewable energy, low cost of electricity, and abundant supply of computer hardware, the island nation has become an attractive destination for crypto miners.
The Communist Government of China’s recent assault on digital money, including mining, has resulted in a mass flight of miners. The remarkable mining movement is the term given to this phenomenon. As a result, Taiwan may become a logical choice for miners. It is the nearest nation to China’s mainland. Nonetheless, the overarching issue is whether cryptocurrency can thrive in Taiwan.
The world of digital currencies is in upheaval. With the Chinese government stomping on all-digital money experiments. One may wonder whether Taiwan might become a hub for digital currency trading. When the question was posed to Will Tseng, a well-known Taiwanese crypto lawyer. Singapore, he said, might be a good option since the rules are more transparent.
Cryptography and the Anti-Money Laundering Act
Taiwan’s new anti-money laundering (AML) rules for crypto assets were released. 1st of July Taiwan’s monetary watchdog, the FSC, chose eight crypto exchanges to carry out the first phase of the new rules. Three of the eight digital money exchanges have ceased operations as a result of the new strategy. The most current anti-money laundering (AML) requirements include reporting transactions worth more than 500,000 New Taiwan dollars (about $18,000) to the investigating agency (FIU).
Taiwanese local regulations are seen as particularly harsh by the digital currency sector. Jason Hsu, a well-known Taiwanese administrator, has fought to include virtual currency service providers. In addition, monetary institutions have been added to the list of financial institutions that must comply with Taiwan’s Money Laundering Control Act.
Taiwan has already attracted a number of decentralized financial and blockchain companies. Crypto Token companies have also established sales, engineering, and marketing teams in Taiwan, as well as employing local professionals, according to Hsu.
Among the many IT entrepreneurs that are feeling compelled to return to their roots in 2019. Leo Cheng reluctantly departed Silicon Valley for Taiwan to join his colleagues. Cheng was worried about losing networking chances and connections in San Francisco. However, COVID-19 happened at that time, and everything changed.
Since its inception in December, the NAOS has amassed 2,500 business clients and $250 million in funding from the United States, Mexico, India, and Indonesia.
According to Hsu, while the Covid-19 epidemic was at its peak, 2,000 unique gold card work visas were issued to foreign IT entrepreneurs and developers who wanted to relocate to Taiwan. Nonetheless, the amount of individuals who are crypto developers or companies is far from obvious.
In all, there may be 500 to 1,000 blockchain and crypto-related people in Taiwan, with many of them hailing from Silicon Valley. Regardless, it’s possible that a major movement of DeFi organizations to Taiwan will be surprising. When it comes to crypto-related companies, there is a lack of administrative clarity. Furthermore, crypto hubs are sprouting up in places like Singapore, while the Taiwanese are less enthusiastic about digital currency.
After Chinese authorities banned initial coin offerings (ICOs) and ordered mainland Chinese digital currency exchanges to cease operations in 2017, it was predicted that Taiwan would become the next crypto hotspot. In any case, there’s a good chance that very little will be up to date.
Taiwan, according to Hsu, has attracted a lot of blockchain and crypto talent. In any event, it has not been able to retain such skills, and there has been a brain drain or talent flight to more manageable locations such as Singapore.
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