Taiwan Special Legislation Public Hearing | Committee Member Luo Mingcai: Special Legislation Progress Too Slow, Only Six People in FSC Responsible, Will Discuss Virtual Asset Management Authority

The Financial Supervisory Commission (FSC) in Taiwan has convened a public hearing on virtual currency regulations, inviting the Financial Supervisory Commission, major virtual currency operators in Taiwan, and relevant experts and scholars to participate. The FSC expressed a “gradual” regulatory attitude, and from the feedback of operators and regulators, it can be seen that Taiwan’s current regulatory challenges and progress. The Securities and Futures Bureau (SFB) stated that the outsourcing regulations will be released, maintaining a “gradual” regulatory position. The current measures are the most basic form of regulation. Maicoin suggested that the government should establish an effective joint defense mechanism. The Securities and Futures Bureau (SFB) will release the outsourcing research report by the end of September. Legislator Luo Mingcai expressed that the progress of the special law is too slow, and the dedicated team only has six people. They are currently discussing the possibility of establishing a virtual asset management bureau. Vice Director Gao Jingping of the Financial Supervisory Commission stated that the Financial Supervisory Commission continues to pay attention to the development of virtual assets in various countries, including the EU’s MiCA, South Korea, Japan, Singapore, and Hong Kong. It also encourages operators and regulatory agencies to interact and share relevant information to enhance their understanding of the industry. Vice Director Gao Jingping stated that trust is the core of the financial industry. Virtual asset operators need to win public trust in order to promote industry development. She emphasized that the Financial Supervisory Commission adheres to the principle of gradual progress in regulating the virtual asset industry, aiming to gradually establish trust and norms. Vice Director Gao Jingping stated that the Financial Supervisory Commission bases its regulation on the existing anti-money laundering laws, gradually improving regulations. The agency recognizes the efforts and achievements of operators in anti-fraud and expects more positive impacts in the future to enhance the industry’s image. Maicoin’s Chief Operating Officer Chen Minghui responded that although they are currently grateful for the cooperation between the Financial Supervisory Commission and law enforcement agencies in real-name registration and AML tracking, relying solely on reporting is not enough. They hope to actively promote joint defense between VASP operators and financial institutions, including verifying the authenticity of bank statements and tracking the flow of funds. They hope that after reporting, operators can receive specific feedback and expect law enforcement agencies to respond to cases within a certain period of time. This will allow operators to explain to customers the reasons for freezing funds and reduce customer complaints. The Financial Supervisory Commission responded that they hope to establish a more comprehensive mechanism through the anti-fraud law in the future, such as law enforcement agencies responding to case processing progress in a timely manner. Vice Director Gao Jingping stated that guidelines were released last year, hoping that operators can gradually develop self-discipline based on these guidelines. In addition, the outsourcing research report will be completed by the end of September this year and will incorporate the latest international legislative experience to form a comprehensive regulatory framework. The Finance Committee convened legislator Luo Mingcai to respond, and the Financial Supervisory Commission stated that it will strive to present a draft law by the end of the year, but it is not clear when the law will actually be implemented next year. The progress is indeed slow, which is not enough for businesses with limited profitability. In response to the inquiry from legislator Luo Mingcai, it was learned that there are only six people in the current manpower of the Financial Supervisory Commission who are dedicated to studying the special law. It is difficult to cope with such a rapidly developing industry. They promised to assist in increasing manpower and promoting development. In addition, legislator Luo Mingcai also revealed that the possibility of establishing a virtual asset management bureau is being discussed. MaiCoin, public hearing, Taiwan, special law, Luo Mingcai, Financial Supervisory Commission.