Legislator Ke Jung-Chun closely monitors the progress of the special law on virtual assets, Central Bank: Bitcoin is not currently considered foreign exchange reserves.

On October 15th, the Legislative Yuan held a plenary session inviting Premier Su Tseng-chang to attend for questioning on the government's policy report. Legislator Ge Ruei-jun emphasized during the inquiry that cryptocurrencies and financial technology have become important global financial market trends, urging the government to accelerate related policies. He raised the question of whether Bitcoin or other digital assets should be considered as part of foreign exchange reserves. Central Bank Governor Yang Chin-long responded that after careful study, Bitcoin will not be included in foreign exchange assets at the moment. Meanwhile, Financial Supervisory Commission Chairman Thomas Huang indicated that the draft of the Virtual Asset Special Act is expected to be introduced by the end of this year and submitted to the Legislative Yuan for review in June next year.

Professional Investors Allowed to Invest in Virtual Asset ETFs, Ke Jyun-Ge Urges for Proactive Policies

Ke Jyun-Ge first acknowledged the government's policy to allow professional investors to invest in foreign virtual asset spot ETFs on September 30, considering it an important step towards the virtual currency market. However, he also pointed out that Taiwan still lacks in the development of virtual currencies, questioning if the government has plans to promote domestic companies to issue virtual asset ETFs, and urging for further exploration of the development potential of virtual currencies domestically.

The Financial Supervisory Commission allows professional investors to invest in foreign virtual asset ETFs, indicating institutional investment in Bitcoin in Taiwan

Premier Su Tseng-chang responded that the government has taken the first step to align with international markets, but emphasized the need for caution in promoting cryptocurrency policies and not to rush. He mentioned that the government will continue to observe the reactions and management conditions of domestic and foreign markets, and formulate the next strategy in due time.

Ke Jyun-Ge: Slow Progress in Taiwan's Virtual Asset Policy Promotion

During the questioning, Ke Jyun-Ge shared his experience of participating in blockchain and fintech events in Japan, pointing out that Japan actively promotes blockchain technology and fintech with the goal of becoming a global innovation center. In contrast, Taiwan's progress in promoting fintech policies has been slow, especially in the establishment of a virtual asset management agency.

In response to the issue of establishing a virtual asset management agency, Financial Supervisory Commission Chairman, Thomas Huang, stated that due to regulatory restrictions, establishing a dedicated virtual asset management organization is difficult. However, the Financial Supervisory Commission has established the "Financial Development and Innovation Department" to handle fintech-related matters. Nevertheless, Huang admitted that the current manpower allocated to handle virtual asset business at the commission is insufficient, with only 13 personnel, most of whom are part-time.

Development Lag in Stablecoins, Government to Strengthen Regulatory Efforts

Ke Jyun-Ge further urged Taiwan to establish a dedicated platform to assist small and medium-sized virtual asset operators, and enhance communication mechanisms between the government and operators to secure a position in the virtual financial sector. He particularly mentioned that the regulation and development of Stablecoins have become a focus of the international financial market, and noted that Taiwan is lagging behind countries such as Japan, Singapore, and the United States in this field. He suggested that the government should strengthen the regulation of Stablecoins, and include them in the discussion scope of a special law on virtual assets to promote the legitimate development of related industries.

In response, Premier Su Tseng-chang stated that the government will refer to successful international experiences, combine them with Taiwan's situation, and gradually promote the deliberation of relevant regulations. Thomas Huang added that the draft of the special law on virtual assets is expected to be submitted by the end of this year and will be sent to the Legislative Yuan for review in June next year.

Taiwan Lags Behind as a Digital Financial Center, Ke Jyun-Ge Urges Acceleration of Financial Policy Reforms

Ke Jyun-Ge also pointed out that establishing a digital financial center is crucial to enhancing Taiwan's international competitiveness. However, Taiwan's ranking in the global financial center index has dropped to 73rd place, with no mention of a digital financial center. He emphasized that Taiwan must accelerate financial policy reforms, especially in the field of digital assets and virtual currencies, or risk falling behind global development.

In response to Ke Jyun-Ge's suggestions, Premier Su Tseng-chang stated that the government will continue to promote financial innovation policies. However, he also emphasized that the development of virtual assets must be based on stable, secure, and trustworthy foundations. He believed that Taiwan needs more research and experimentation to ensure the healthy development of the virtual financial market.

Ke Jyun-Ge Emphasizes Taiwan's Need to Accelerate Catching up with International Competitors

Lastly, Ke Jyun-Ge stressed that Taiwan should accelerate in "overtaking" in the field of financial innovation, especially in the development of Stablecoins and virtual currencies, and not fall behind international competitors. He urged the government to provide more creative and flexible policy support to create more opportunities for Taiwan's digital financial industry, ensuring a place in the global financial market in the future.