Blockchain Legal Forum | Key Discussion between KGI and ACE: The Next Stage of Clarifying Cryptocurrency Regulations in Taiwan

The "Blockchain Application Legal Summit," co-hosted by media partners Blockcast, Argoblocks Group, and KryptoGO, took place on April 7 at the International Conference Center of Hua Nan Commercial Bank in Taipei. During the morning sessions, ABM Asia Marketing Chief Lai Xiaowei, ACE Exchange CEO Wang Huoxu, and Cathay United Bank Assistant Manager Chen Zhirong discussed the trend of Taiwan's increasingly clear cryptocurrency regulation. They also shared their views on the development of policies such as "asset segregation" and "investor protection" set by the Financial Supervisory Commission.

How do centralized exchanges protect user assets?

ACE CEO Wang Haoxu mentioned several key points:

1. High Cooperation with Taiwan Regulatory Authorities

He pointed out that when ACE was established in 2018, it commissioned KPMG to collaborate on a compliance report. ACE was also the first exchange in Taiwan that KPMG provided guidance to. In addition, ACE has maintained close cooperation with the Taiwan Ministry of Justice Investigation Bureau, as well as the National Police Agency's 165 unit, demonstrating high cooperation in fraud prevention and anti-money laundering with Taiwan regulatory authorities.

2. Recognizing the High Risk of Crypto Assets, Exchanges Should Have High Standard Risk Controls

Wang Haoxu emphasized that exchanges should not release false data for the sake of trading volume or user numbers. ACE chose to partner with KGI Bank to provide users with 100% New Taiwan Dollar trust custody services and adopted the Cybavo cryptocurrency wallet system to safeguard user assets.

3. Full Cooperation with Taiwan's Financial Supervisory Commission on "Self-Regulatory Framework"

Recently, Taiwan's cryptocurrency regulations have been becoming clearer. The Financial Supervisory Commission will act as the main regulatory authority for virtual assets and establish guiding principles for virtual assets. Wang Haoxu also expressed that ACE will closely discuss with the regulatory authorities, including the preliminary regulatory policies promoting industry self-regulation. ACE will fully cooperate in these efforts.

How does KGI Bank view the cryptocurrency industry amidst high risks?

Deploying Next-Generation Business in the Startup Industry

KGI Bank Associate Chen Zhirong stated that KGI Bank has always maintained an open attitude towards the startup field, hoping to establish next-generation business products from it.

Where Traditional Finance Meets the Crypto World: From Research to Venturing into Unknown Territory

He mentioned that KGI Bank has been researching cryptocurrencies for nine years now. Despite starting from cooperating with crypto businesses to their current position, KGI Bank continues to serve businesses with caution, absorbing experiences along the way to deepen their cooperation.

I hope that banks in the future can provide a diverse range of financial services on their platforms, and that crypto businesses can focus more on developing products and applications for users under regulatory compliance. I believe this kind of relationship is a positive cycle and also provides a great opportunity for the future development of financial technology in Taiwan.

With both banks and exchanges under the supervision of the FSC, will they become competitors in the future?

Wang Haoxu stated that exchanges are genuinely grateful for the trust and support from banks. He also believes that exchanges finally coming under the supervision of the regulatory authorities is a good thing, emphasizing that both entities complement each other:

I think both banks and crypto businesses are waiting for clear regulations. I believe that both sides, under different business models, will complement each other, and this kind of cooperative relationship will have a synergistic effect greater than the sum of its parts in the future.