Taiwanese legislators propose enhancing national-level AI warning system to strengthen supervision of virtual assets; Executive Yuan to propose anti-fraud legislation in April.

As virtual assets are becoming a new channel for fraudulent activities, the Taiwanese Financial Supervisory Commission inspected the Financial Supervisory Commission on the 11th. Many legislators from different parties unanimously urged for the regulation of virtual assets through special laws and proposed the establishment of a national-level AI alert system to combat increasingly sophisticated fraudulent schemes.

Gradual Improvement of Regulatory Framework, Executive Yuan to Propose Anti-Fraud Law in April

Members of the Finance Committee, including convener Lo Ming-tsai, KMT legislator Wang Hung-wei, TPP legislator Huang Shan-shan, and DPP legislator Lee Kun-cheng, collectively visited the FSC to discuss the actual effectiveness of banks using technology to prevent fraud.

The Executive Yuan plans to propose an anti-fraud law in April to integrate and strengthen the regulation of virtual assets. Huang Tian-mu revealed that the new law aims to consolidate the management responsibilities of financial institutions and virtual asset platforms, provide clearer legal support, such as freezing suspicious accounts and strengthening identity verification.

Legislators Suggest Establishing a National Warning Platform

Huang Shan-shan emphasized that many current anti-fraud measures are limited to the banking sector, but fraud has extended to diverse channels involving virtual assets and third-party payments. She proposed that the government should assist in establishing a comprehensive AI warning system, expanding to include various financial transaction platforms to more effectively detect and alert abnormal fund flow activities. Huang Tian-mu responded that the FSC is collaborating with the judiciary and law enforcement agencies to rapidly advance the electronic query of financial data to accelerate the handling of fraud cases and is committed to realizing Huang Shan-shan's suggestion.

This inspection activity and the suggestions put forward all point to the need for more comprehensive and advanced technological means to combat increasingly cunning financial fraud, highlighting the importance of legislation and technological innovation in contemporary financial security.