Taiwan Special Law Public Hearing | Xrex Revenue Growth: Taiwanese Industry’s Technology Capable of Combating Fraud, Regulatory Focus Should be on Industry Integration Development
The Taiwan Financial Supervisory Commission has convened a public hearing on special legislation, inviting committee member Luo Mingcai, Financial Supervisory Commission, major virtual currency operators in Taiwan, and relevant experts and scholars. Xrex Revenue Manager Xiao Huizong, on behalf of TFTA (Taiwan FinTech Association), explained the self-discipline of Taiwan operators and their efforts to combat fraud.
(Committee member Luo Mingcai: The progress of special legislation is too slow. The Financial Supervisory Commission has only six dedicated staff members. We will discuss the establishment of a virtual asset management agency.)
(Taiwan Public Hearing|MaiCoin: Suggested opening perpetual contracts and graded management of operators.)
Content Index
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Taiwan operators demonstrate self-discipline and practical actions
Self-discipline and technology against fraud
Establishment of associations and self-disciplinary regulations
Formulation of articles and classification of operators
Efforts and innovations of Taiwan operators
Compliant exchanges can prevent users from turning to high-risk platforms
Technological breakthrough: combating fraud with AI
Judicial cooperation and asset recovery
Future prospects: integration of exchanges upstream and downstream
Xrex Revenue Manager Xiao Huizong stated that in response to industry headwinds and social issues, operators have demonstrated self-discipline by implementing real-name verification standards, among other measures. All operators have fully committed and showcased the strength and achievements of Taiwan operators, demonstrating significant progress within a short period.
He believes that the regulatory demands of the virtual asset industry stem from global issues, such as the FTX incident. In fact, technology can effectively combat fraud without necessarily tightening regulations. Although Singapore has stricter regulations, its fraud issues are more severe.
He mentioned that on March 25, the Ministry of the Interior officially issued a letter allowing the establishment of an association. During the formulation of self-disciplinary regulations, operators can provide input with the goal of establishing the association within three months. The establishment of the association encountered many difficulties, but through cooperation with the Ministry of the Interior and the Financial Supervisory Commission, the issues were gradually resolved.
He explained that the articles divide operators into three categories (ABC) and ensure a balance of different types of operators in the setting of directors and supervisors. The formulation of articles was achieved through continuous communication with the Ministry of the Interior and the Financial Supervisory Commission, ultimately resolving disputes and ensuring a balance of interests.
Xrex Revenue Manager Xiao Huizong mentioned that Taiwan operators are actively developing anti-fraud technology and providing free-to-use tools. TFTA is collaborating with several global companies to jointly promote the implementation of anti-fraud measures. He emphasized the importance of anti-money laundering and industry collaboration in meeting Taiwan’s needs for entrepreneurial standards. Operators have invested significant resources, showcasing the potential of self-discipline and technology.
He highlighted the importance of compliant exchanges and mentioned the challenges brought by underground exchanges. Compliant exchanges can effectively warn and notify fraudulent activities and cooperate with law enforcement agencies in investigations and tracking.
He mentioned that some operators have developed AI identification modules that efficiently identify and warn against fraudulent behavior, emphasizing Taiwan operators’ innovation and technological leadership in the global anti-fraud field.
He mentioned close cooperation with the Financial Action Task Force (FTAF), achieving judicial assistance and asset freezing, and emphasized an offensive anti-fraud strategy, which involves freezing and recovering large sums of money to deter fraudulent behavior.
Xrex Revenue Manager Xiao Huizong stated that the future focus is on integrating energy, technology, and data to create conditions for regulation. It is necessary to achieve integration and risk management between exchanges upstream and downstream to develop a healthy virtual asset trading ecosystem.
XREX
Public Hearing
Xiao Huizong
