Taiwan is taking steps to strengthen its cryptocurrency regulations, with the Financial Supervisory Commission (FSC) set to become the central authority for overseeing the sector.

According to FSC Chairman Huang Tian-mu, the regulator has been instructed by the cabinet to supervise crypto payments and transactions, with a formal announcement to follow soon.

The FSC’s primary focus will be on ensuring that trading platforms keep their assets separate from those owned by clients and supervising their product listings and customer protection measures. The regulator will also discuss establishing self-regulating guidelines with domestic crypto platforms.

In July 2021, the FSC introduced anti-money laundering rules for crypto service providers, but the industry remained largely unregulated. The FSC has also asked banks and credit card companies not to allow credit cards as a means of payment for virtual asset services.

Taiwanese lawmaker Tseng Ming-Chung has called for the newly-established Ministry of Digital Affairs (MODA) to become the central agency governing the crypto sector.

He argues that MODA would be a more ideal governing agency as it encourages digital innovation and would focus more on development, while the FSC would likely be more inclined towards traditional financial supervision.

Taiwanese authorities have become more aware of crypto risks since the collapse of FTX crypto exchange, which accounted for roughly 3% of FTX’s global customer total.

Last month, Taiwan’s Ministry of Justice said that it is considering regulations that would require government officials and employees to report their crypto asset holdings under local property declaration laws.