Banks will be able to custody virtual assets! Taiwan FSC Chairman, Thomas Huang: Promoting five major strategies for financial technology.

Financial Supervisory Commission (FSC) Chairman, Thomas Huang, announced a series of five strategies on 7/16 to accelerate the development of financial technology (fintech), aiming to promote financial innovation and digital transformation, bringing new opportunities to Taiwan's financial market. These strategies include expanding the margin of error, encouraging the establishment of fintech alliances, allowing the financial industry to enter the virtual asset field, restarting the establishment of pure online insurance, and leading the development of fintech. Huang stated that these measures will effectively promote further development of fintech in Taiwan.

A More Substantial Sandbox: Expanding Margin of Error and Innovation

The Financial Supervisory Commission's (FSC) first strategy is to expand the margin of error and encourage innovation. Peng Chin-lung emphasized that by relaxing the self-regulatory norms of the Financial Association, administrative rules, and regulatory orders, the financial and tech industries can conduct experiments more flexibly. He referred to this as a "lightweight sandbox," where innovative trials can take place without legal challenges, and successful experiments can be directly applied to substantive financial services. Additionally, the FSC will actively seek out successful international cases and invite international financial technology firms to cooperate in Taiwan.

Encouraging Financial Technology Alliances

The second strategy is to encourage the establishment of financial technology alliances to pool resources and jointly invest in startups. Peng Chin-lung stated that financial institutions should break down territorialism and promote the development of financial technology through collective investment and cooperation. This group strategy not only addresses individual issues but also promotes a win-win situation for the financial and tech industries.

Promoting Virtual Asset Custody

The third strategy is to allow financial institutions to enter the virtual asset field to assist in financial transformation. This includes promoting the tokenization of real-world assets and opening up financial institutions to engage in virtual asset custody services. Director-General of the Banking Bureau, Chuang Hsiu-yuan, pointed out that virtual asset custody mainly involves two methods:

• 1. Storing customer private keys in physical safe deposit boxes

• 2. Using algorithms to safeguard private keys.

This will significantly enhance the trustworthiness of virtual asset platforms and create new business opportunities for the banking industry.

Restarting Pure Online Insurance Applications

The fourth strategy is to support the development of online digital finance, including restarting pure online insurance applications by the end of the year. Peng Chin-lung expressed the hope to see creatively and energetically innovative pure online insurance companies, akin to "wolf-like huskies," breaking through existing frameworks and bringing more innovation.

Establishing the "Financial Market Development and Innovation Department"

Finally, the FSC will establish the "Financial Market Development and Innovation Department" to support inclusive financial innovators, optimize financial digital identity verification, improve data sharing mechanisms, and continue to promote the roadmap for financial technology development. These measures aim to support entrepreneurs from multiple angles and promote ongoing innovation and development in the financial market.

New Chairman Peng Chin-lung Strongly Promotes Financial Technology Development

Within just three months of assuming office, Peng Chin-lung introduced a series of favorable policies, demonstrating his determination to promote financial technology development. These five major strategies not only inject new vitality into the Taiwanese financial market but also provide broad space for financial industry players to explore new business opportunities.