Chairman of the Financial Supervisory Commission (FSC) Huang Tien-Mu: Establishing specific laws for cryptocurrency may legitimize virtual currency investments.

Financial Supervisory Commission (FSC) Chairman Huang Tien-mu, during questioning on the 27th, responded to the proposal by Democratic Progressive Party legislator Jiang Yongchang to establish a "Virtual Assets Office." Huang Tien-mu stated that Taiwan will still prioritize self-regulation by the industry, and is currently not inclined to establish special laws, as there are concerns that legislation might instead confer legitimacy on cryptocurrencies.

Clarification of Virtual Currency Regulation in Multiple Countries, Can Taiwan's FSC Rely Solely on Self-Regulation by Industry Players?

Legislator Jiang Yongchang questioned FSC Chairman Huang Tien-mu, noting that Japan, the EU, Singapore, Dubai, and other regions have specific laws on virtual assets, with regulatory scope covering various activities involving virtual assets. In contrast, in Taiwan, can consumer protection truly be ensured solely through "industry self-regulation"? If industry players violate self-regulation, how will the FSC handle it without relevant penalties in place? The FSC will sooner or later face the regulation of virtual assets, so why not implement it sooner?

Legislator Jiang Yongchang stated that the current regulatory scope of Taiwan's FSC is too narrow, and the manpower and resources allocated are insufficient.

Review: Legislator Jiang Yongchang's proposal for the Virtual Assets Office

FSC Chairman Huang Tien-mu: Violators of Self-Regulatory Norms Will Lose Trust

FSC Chairman Huang Tien-mu responded that the EU's MiCA proposal will reference guiding principles, and overall, the development of virtual assets changes rapidly. The FSC tends to observe first and then amend regulations.

Huang believes that if industry players do not comply with self-regulatory norms, in addition to existing anti-money laundering regulations, collaboration with banks can also control the flow of funds for cryptocurrency operators who violate the norms; in the financial industry, "trust" is the most important asset, and violating self-regulatory norms will result in losing investors' trust.

FSC Chairman Huang Tien-mu: Avoiding Halo Effects, Preventing the Legitimization of Cryptocurrency Investments

FSC Chairman Huang Tien-mu believes that Taiwanese society still views cryptocurrency investments with a "speculative eye," and it must reflect on what the actual economic value is. Therefore, the FSC's stance is primarily focused on investor protection. He believes that Taiwan's approach is similar to the UK's Financial Conduct Authority (FCA), not actively enacting specific laws to avoid the halo effect that legislation may bring. That is, establishing specific laws may potentially legitimize cryptocurrency investments, leading investors to believe there is no risk, indirectly encouraging investment in virtual assets.

The FSC supervises in a gradual manner, giving leeway to industry players.

In-Depth Regulatory Discussions Already Taking Place in the UK

FSC Chairman Huang Tien-mu stated that the UK's Financial Conduct Authority (FCA) is not actively enacting specific laws due to the halo effect. However, in reality, the UK is a region favored by Coinbase for its friendly crypto regulation, and the UK tax authority is currently seeking public opinions on taxing DeFi lending and staking.