Stop criticizing the Financial Supervisory Commission for not protecting Taiwan's FTX users! Overseas institutions cannot be regulated, following the same practices as Japan and Singapore.

The recent bankruptcy filing of FTX has caused a stir in Taiwanese society, with an estimated damage to the assets of over 100,000 users in Taiwan. This incident not only affects the public's confidence in cryptocurrency assets, but also prompts Legislator Li Kui-min to question why the Financial Supervisory Commission has not regulated this new form of trading, neglecting the property rights of the Taiwanese people. In response to this matter, the Financial Supervisory Commission issued a statement on the 23rd.

Financial Supervisory Commission of Taiwan Aligns Practices with Japan and Singapore Governments

According to a press release from the Financial Supervisory Commission (FSC), the commission clarified the issue surrounding allegations that the Japanese Financial Services Agency regulates domestic and foreign virtual cryptocurrency exchanges, questioning the Taiwanese government's protection of the rights of overseas exchange users in Taiwan.

The FSC stated that FTX Exchange is based overseas and is not an institution approved by the FSC, and the related products are provided overseas. Investors should assess the risks on their own.

This practice is consistent with that of Japan and Singapore. However, only FTX Japan, the Japanese subsidiary of FTX, is a licensed cryptocurrency exchange operator in Japan. Therefore, the Japanese Financial Services Agency was able to issue an administrative sanction to suspend operations for FTX Japan and take measures to protect the rights of FTX Japan's clients. The overseas FTX Exchange remains beyond the jurisdiction of the Japanese Financial Services Agency.

The Monetary Authority of Singapore (MAS) also issued a press release on the 21st clarifying that FTX Exchange is not licensed by MAS and operates overseas, making it impossible for MAS to protect the rights of Singapore users trading on FTX Exchange. Furthermore, virtual asset exchanges permitted in Singapore are only regulated for anti-money laundering purposes and do not provide investor protection.

Encouraging Increased Vigilance, Derivative Products Remain Unregulated

In the press release, the FSC once again reminded investors that information on virtual asset trading is opaque and prices are highly volatile, posing high investment risks. It is essential to remain vigilant and carefully assess investment risks.

Additionally, the FSC stated that aside from Security Token Offerings (STO) which are considered securities under the Securities Trading Act, and therefore should comply with relevant regulations, other types of virtual assets or related products such as options and margin trading, have not been approved by the FSC and are not covered by the commission's regulatory framework.