Public Hearing for Special Law in Taiwan | MaiCoin: Recommending Opening Sustainable Contracts and Implementing Graded Management for Operators
The Taiwan Financial Supervisory Commission (FSC) has convened a public hearing on the special law, inviting FSC Commissioner Luo Mingcai, as well as representatives from the Financial Supervisory Authority of Taiwan (FSA) and major virtual currency operators in Taiwan, along with relevant experts and scholars. MaiCoin’s Chief Operating Officer, Chen Minghui, presented his views on the special law, including the trading of derivative products such as perpetual contracts, which are not yet available in many countries, as well as the difficulties in cooperation between exchanges and banks.
Commissioner Luo Mingcai expressed his concern that the progress of the special law is too slow, and that the FSA only has six dedicated personnel. He also discussed the establishment of a virtual asset management agency.
The content of the article includes the following points:
1. Gradual introduction of the special law
2. Simplifying the system: excluding trust in buying and selling
3. Opening up business to derivatives to increase operators’ income
4. Virtual asset operators to be regulated by a dedicated agency
5. Improvement needed in fraud prevention and joint defense mechanisms
6. Enhancing communication between different roles in order to combat fraud
Chen Minghui, the Chief Operating Officer of MaiCoin, advocated for a gradual approach to the introduction of the special law, suggesting that business classification and scope should be determined first. He proposed that spot trading-based cryptocurrency businesses or exchanges adopt a registration system and be subject to graded management based on their business scale.
Chen also suggested that simplified procedures could be applied to cryptocurrency businesses or exchanges engaged in buying and selling on behalf of others, without the need for trust arrangements, but with the requirement for information security management. When the business reaches a certain level, compliance regulations and guidelines should be followed.
Chen further recommended that the special law should allow for the inclusion of derivative financial products, such as ETFs, binary options, and perpetual contracts. Clear guidelines should be provided regarding business scale, capital requirements, and shareholder structure, to enable operators to survive and develop in a compliant manner.
Chen emphasized the importance of introducing dedicated agency management gradually, in order to reduce communication costs and promote professional management when supporting measures are in place.
Furthermore, Chen expressed the hope that virtual asset service providers (VASPs) and financial institutions can work together more efficiently in joint defense, including verifying the authenticity of account statements and tracing fund flows.
In addition, Chen proposed that law enforcement agencies should provide timely feedback on the handling of cases after reporting risks. Otherwise, operators can only wait, without knowing when funds can be unfrozen or any other actions can be taken. She suggested the establishment of clear regulations that allow operators to explain to customers the reasons for fund freezes and reduce customer complaints.
Chen also provided specific operational suggestions on how operators can cooperate with financial institutions and law enforcement agencies more effectively in combating fraud. She believes that more efficient anti-fraud measures can be achieved through joint defense and communication among financial institutions, law enforcement agencies, and operators.
The article concludes with references to other related topics, such as the use of perpetual contracts in the market and Coinbase’s approval for regulated trading of perpetual contracts.
