Taiwan Special Law Public Hearing | Legislator Luo Ming-tsai: Special law progress is too slow, FSC dedicated team only has six members, will discuss establishment of virtual asset management agency

The Taiwan Financial Supervisory Commission convened a special public hearing with Commissioner Luo Mingcai, gathering officials from the Financial Supervisory Commission, major players in Taiwan's virtual currency industry, as well as relevant experts and scholars. The Financial Supervisory Commission expressed a "gradual" regulatory approach, and insights from both industry players and regulators shed light on the current regulatory challenges and progress in Taiwan.

Financial Supervisory Commission: Outsourcing Regulations to be Released, Maintaining a "Gradual" Regulatory Stance

Deputy Director-General of the Financial Supervisory Commission (FSC), Kao Ching-ping, mentioned that the FSC continues to monitor the development of virtual assets in various countries, including the EU's MiCA, South Korea, Japan, Singapore, and Hong Kong. The FSC encourages industry players to interact and exchange information with regulatory agencies to enhance understanding of the industry.

Deputy Director-General Kao emphasized that trust is the core of the financial industry. Virtual asset operators need to earn public trust to promote industry development. She stressed that the FSC adheres to the principle of gradual progress in regulating the virtual asset industry, aiming to gradually establish trust and norms.

Current Measures are the Most Basic Regulatory Measures

Deputy Director-General Kao stated that the FSC is conducting basic regulation based on current anti-money laundering laws and gradually improving regulations. She acknowledged the efforts and effectiveness of operators in combating fraud and looks forward to more positive impacts in the future to enhance the industry's image.

Maicoin Suggests Government Should Establish an Effective Joint Defense Mechanism

Chen Ming-hui, Chief Operating Officer of Maicoin, responded that despite the current cooperation between the FSC and law enforcement in real-name authentication and AML tracking, relying solely on reporting is not enough. He hopes to actively encourage VASP operators to jointly defend with financial institutions, including verifying the authenticity of account details and tracking fund flows.

He hopes that operators can receive specific feedback after reporting and expects law enforcement to respond to cases within a certain period. This allows operators to explain to customers the reasons for frozen funds and reduce customer complaints.

The FSC responded that it hopes to establish a more comprehensive mechanism in the future through the enactment of anti-fraud laws, such as law enforcement responding promptly on case progress.

Financial Supervisory Commission: Outsourcing Research Report to be Released by the End of September

Deputy Director-General Kao stated that guidelines were issued last year, hoping that operators will self-regulate based on these guidelines and gradually move towards external regulation. In addition, an outsourced research report will be completed by the end of September this year, incorporating the latest international legislative experiences to form a comprehensive regulatory framework.

Legislator Lo Ming-tsai: Progress of Special Laws is Too Slow, Specialized Team Only Consists of Six People, Discussing the Establishment of a Virtual Asset Management Bureau

Legislator Lo Ming-tsai, a member of the Finance Committee, responded that the FSC stated it will strive to have a draft of special laws by the end of the year, but it is unclear when the special laws will be enacted next year. The progress is indeed slow, which is urgent for operators with limited business profits.

Under Legislator Lo's inquiry, it was revealed that the current FSC team with dedicated research on special laws consists of only six people. How to cope with such a rapidly growing industry and promises to assist in increasing staff to promote development. In addition, Legislator Lo also disclosed that the possibility of establishing a Virtual Asset Management Bureau is under discussion.