The Financial Supervisory Commission (FSC) is expanding the Fifth Bureau to include a "Virtual Asset Bureau"? Legislator Jiang Yongchang's proposal to amend the law has passed the first reading.
The Executive Yuan previously decided that the Financial Supervisory Commission (FSC) would serve as the regulatory authority for virtual assets, with a focus on "self-regulation by associations" as the main regulatory direction. This approach has sparked discussions. According to a report by the United Daily News, DPP legislator Jiang Yongchang proposed on April 21 to establish a new "Virtual Asset Department" within the FSC, which has already passed its first reading in the Legislative Yuan.
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Financial Supervisory Commission to Establish "Virtual Assets Bureau"?
The Financial Supervisory Commission (FSC) currently has four bureaus covering inspections, insurance, securities and futures, and banking. Legislator Jiang Yongchang's joint proposal suggests that in consideration of protecting virtual asset investors and implementing anti-money laundering regulations, it is appropriate to handle financial products and activities related to virtual assets properly, and a dedicated unit for supervision would be most suitable.
Jiang Yongchang plans to submit a draft amendment to Articles 2, 3, and 4 of the "Financial Supervisory Commission Organization Act," proposing revisions to the FSC's organizational structure and the addition of a Virtual Assets Bureau.
Reasons for Establishing a Virtual Assets Bureau by the FSC
Jiang Yongchang mentioned several points:
The virtual asset market will continue to develop, expand gradually, and undergo various changes.
The FSC cannot view the virtual asset market within the existing financial regulatory framework.
The rapid development of virtual assets, with various sectors such as DeFi and stablecoins, will make it difficult for the FSC to regulate with its current manpower allocation.
Traditional financial professionals have expressed that since its establishment in 2004, the FSC has maintained the four major bureaus, and adding a fifth bureau would involve staffing and organizational structure changes, making it a "massive undertaking."
Previously reported, during a press conference where the FSC was announced as the main regulatory authority for virtual assets, it was stated that there are no plans to establish related laws or include virtual assets in licensed industries. It emphasized that the security of the crypto industry mainly relies on the owners' "self-discipline" and "mutual restraint."
The plan is for the "VASP Association for Managing Virtual Asset Platforms and Trading Businesses" to establish self-disciplinary norms based on guiding principles, "hoping that large operators will lead small operators" to further guide operators in strengthening internal controls.
FSC Announcement Details: FSC Becomes the Main Regulatory Authority for Virtual Assets! Not a licensed industry, no regulations set, relying on "associations" for self-discipline