Legislator Kuo Ju-chun questioned the Financial Supervisory Commission, which confirmed that the registration system for Virtual Asset Service Providers (VASPs) in Taiwan will be implemented earlier on December 1st this year.

Regarding the implementation timeline of the registration system for Virtual Asset Service Providers (VASPs) in Taiwan, Kuomintang legislator Ke Jinyun recently expressed concerns to Financial Supervisory Commission (FSC) Chairman Thomas Huang. Ke pointed out that the originally scheduled VASP registration system, set to begin in January 2025, may be moved up to December 1, 2024, potentially impacting both the industry and regulatory oversight. Huang clarified that the adjustment was not due to pressure from the Executive Yuan but rather to align with the strong societal demand for fraud prevention.

Ke, Ju-Chun Questions Early Implementation of Registration System

Kuomintang legislator Ke, Ju-Chun raised questions to Financial Supervisory Commission (FSC) Chairman Thomas Huang regarding the early implementation of the Virtual Asset Service Provider (VASP) registration system. According to the anti-money laundering amendment bill enacted in August this year, VASP operators are required to transition from the original declaration method to a registration system. The registration system was initially scheduled to be officially implemented in January 2025. However, recent rumors suggest that under pressure from certain individuals, the Executive Yuan may advance the implementation date by one month to December 1, 2024. Ke emphasized that advancing the implementation by one month would have a significant impact on operators, especially since registration involves criminal liability, which significantly increases legal responsibility compared to previous administrative penalties.

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Ke further pointed out that such hasty policy changes do not adhere to the principle of protection of legitimate expectations. Operators find it difficult to adapt to sudden policy changes by the government, affecting their business confidence. He urged FSC Chairman Huang to negotiate with the Executive Yuan to stick to the original implementation plan for the registration system to avoid abrupt changes.

Thomas Huang Clarifies: Early Implementation in Response to Social Demand

In response, FSC Chairman Thomas Huang stated that the early implementation of the registration system is not due to pressure from the Executive Yuan but is in response to the society's demand for fraud prevention. He noted that the VASP registration system is part of the efforts to combat fraud-related laws, and there is a strong demand from all sectors of society for fraud prevention measures to be implemented as soon as possible. He emphasized that the purpose of early implementation is to enhance fraud prevention efficiency, which is a direction widely supported by society.

Huang added that after the registration system is implemented, operators will have three months to complete the registration process, and it will only be officially enforced nine months after registration. This period provides an adequate buffer. He expressed gratitude for the cooperation and efforts of VASP operators and stressed that the FSC has tried to minimize the impact of this policy on operators.

Ke, Ju-Chun Worries about Manpower and Operational Difficulties

Despite Huang's assurance of an adequate buffer period for the registration system, Ke expressed concerns about the rushed implementation of the policy. He emphasized that operators need to submit internal control mechanisms and payment-related information prepared by accountants for registration. As the year-end is a busy period for operators, if the policy is implemented early, it may lead to operators being unable to respond properly, resulting in a lose-lose situation.

Ke also pointed out that there is insufficient manpower within the FSC to handle VASP registration, a concern that has been raised in previous general inquiries, and the Premier is aware of the situation. He worried that if the policy is rushed, both the FSC and operators will face immense pressure, and urged Chairman Huang to actively reflect this to the Executive Yuan and strive to implement the registration system according to the original schedule.

Thomas Huang Promises to Reflect Feedback

In response to Ke's questions, Thomas Huang promised to relay the feedback to the Executive Yuan and emphasized that the FSC has made efforts to minimize the impact of the policy on operators. During the policy announcement period, the FSC provided relevant forms and documents and ensured that operators had sufficient time to prepare during the transition period. He reiterated appreciation for the cooperation and efforts of operators and stated that the FSC will continue to monitor the implementation of the registration system.

In conclusion, the early implementation of the VASP registration system remains controversial. While the FSC Chairman emphasized that this is in response to society's fraud prevention needs, legislators and operators have expressed many concerns. Whether the FSC will make adjustments based on industry feedback remains to be seen.