Taiwan's encryption special law "Virtual Asset Service Act" public hearing 6 key points: Unlicensed operators will be dealt with more severely if involved in fraud!
The draft of Taiwan's Virtual Asset Services Law (VASP Special Law) has entered the final sprint, and the FSC put forward six supervision points at the public hearing on the 12th, the central bank locks in stablecoins, and industry, government and academia focus on the balance between market protection and innovation. (Summary: How to read the FSC's version of the draft "Encryption Law"? Banks issue NTD stablecoins? If the public has comments, leave an online message) (Background supplement: Dr. Po Ge Rujun: Taiwan has Ready Bitcoin reserves! Cryptocurrency law "It's better not to be good than not to") Taiwan's draft Virtual Asset Services Law is moving towards a key pre-legislative stage. The Finance Committee of the Legislative Yuan held its fifth public hearing on June 12, at which the FSC identified six major supervision priorities, while the central bank focused on stablecoin norms; Representatives of industry, government and academia clashed at the same time to set the tone for the cryptocurrency industry. Legislative schedule According to the meeting materials, the FSC is expected to send the revised draft to the Executive Yuan by the end of June, with the intention of completing the third reading within the 2025 session. If the time goes well, all unlicensed Virtual Asset Service Providers (VASPs) must complete the conversion within 6 months of the effective date of the Act, otherwise they face the risk of criminal sanctions and takedown. Market participants estimate that domestic trading volume may contract by 10%-15% in the short term due to rising compliance costs, and the pace of entry of large international exchanges is expected to accelerate. The FSC's six focal points The FSC will focus on six aspects of supervision: Overseas VASP landing Investor protection Criminal liability for operating without permission Financial institution license management New business opening Financial report disclosure The service law initially allows VASP operators to operate six businesses, including virtual asset exchange, platform, transfer, custody, underwriting, and lending, and will release more scenarios "step by step" according to risks. For unauthorized business operators, if they are involved in fraud, the "Regulations on Prevention and Control of Fraud Crimes" may be cited to aggravate the punishment. Chen Yanliang, vice chairman of the FSC, pointed out that the length of the transition clause is "flexible", and the goal is that "there is no market without the industry", which will give the industry time to complete the application. Tsai Yu-ling, honorary president of the Taiwan Fintech Association, suggested: "Fraud should not be a reason to hinder the development of the virtual asset industry." She advocated the authorization of the parent law and the subdivision of the sub-laws, and cautioned against setting up high walls against foreign operators. Jian Shuyong, director of the Taiwan Virtual Asset Anti-Money Laundering Association, pointed out that the Global Digital Finance (GDF) has made four suggestions on special laws through writing: the wording of special laws can be in line with FATF standards, regulations are formulated according to the principle of proportionality, the benefits of global liquidity are taken into account, and special laws avoid direct copying of EU MiCA provisions. Jian Shuyong reminded that if the requirements of the special law are too high, "Taiwan may become a shallow market." In order to avoid Taiwan becoming a shallow market, it is really necessary to connect and encourage industry players to connect with flexible regulations and open markets with good global liquidity, so that it can truly attract international players with good physique to land in Taiwan. The academic community also proposed a number of supporting facilities: Lin Mengxiang of Mingchuan University advocated the establishment of unified domestic and foreign access standards and sandboxes; Zheng Tingxian of Central University suggested grading according to the scale of the industry to help investors identify risks. Regulatory outline of stablecoins The central bank regards a single fiat currency linked stablecoin as an "electronic payment tokenization tool", while multi-currency or asset linkage requires stricter hierarchical management. The Secretary for Operations, Ms. Tse Fung-ying, reminds that "asset separation and information disclosure are essential to protect the right of redemption." According to market interpretation, once the regulations are formed, the issuance of domestic stablecoins will be monitored by both the capital adequacy ratio and the reserve ratio. The public hearing highlighted the FSC's search for a balance between protecting investors and promoting innovation. With the draft expected to be sent to the hospital at the end of the month, Taiwan will usher in the first set of crypto industry supervision framework that combines international standards and "local characteristics". Related reports Financial management will engage in black boxes? Crypto law public hearing "held in the morning and afternoon", Peng Jinlong: Taiwan's regulation is at the forefront of the world BitoPro and MaiCoin simultaneously stop supermarket payments! Implement the FSC's ban on cash trading cryptocurrencies "Taiwan's Crypto Law Virtual Asset Services Act" public hearing 6 key points: unlicensed businesses if involved in fraud aggravate treatment! This article was first published in BlockTempo's "Dynamic Trend - The Most Influential Blockchain News Media".
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Taiwan's encryption special law "Virtual Asset Service Act" public hearing 6 key points: Unlicensed operators will be dealt with more severely if involved in fraud!
The draft of Taiwan's Virtual Asset Services Law (VASP Special Law) has entered the final sprint, and the FSC put forward six supervision points at the public hearing on the 12th, the central bank locks in stablecoins, and industry, government and academia focus on the balance between market protection and innovation. (Summary: How to read the FSC's version of the draft "Encryption Law"? Banks issue NTD stablecoins? If the public has comments, leave an online message) (Background supplement: Dr. Po Ge Rujun: Taiwan has Ready Bitcoin reserves! Cryptocurrency law "It's better not to be good than not to") Taiwan's draft Virtual Asset Services Law is moving towards a key pre-legislative stage. The Finance Committee of the Legislative Yuan held its fifth public hearing on June 12, at which the FSC identified six major supervision priorities, while the central bank focused on stablecoin norms; Representatives of industry, government and academia clashed at the same time to set the tone for the cryptocurrency industry. Legislative schedule According to the meeting materials, the FSC is expected to send the revised draft to the Executive Yuan by the end of June, with the intention of completing the third reading within the 2025 session. If the time goes well, all unlicensed Virtual Asset Service Providers (VASPs) must complete the conversion within 6 months of the effective date of the Act, otherwise they face the risk of criminal sanctions and takedown. Market participants estimate that domestic trading volume may contract by 10%-15% in the short term due to rising compliance costs, and the pace of entry of large international exchanges is expected to accelerate. The FSC's six focal points The FSC will focus on six aspects of supervision: Overseas VASP landing Investor protection Criminal liability for operating without permission Financial institution license management New business opening Financial report disclosure The service law initially allows VASP operators to operate six businesses, including virtual asset exchange, platform, transfer, custody, underwriting, and lending, and will release more scenarios "step by step" according to risks. For unauthorized business operators, if they are involved in fraud, the "Regulations on Prevention and Control of Fraud Crimes" may be cited to aggravate the punishment. Chen Yanliang, vice chairman of the FSC, pointed out that the length of the transition clause is "flexible", and the goal is that "there is no market without the industry", which will give the industry time to complete the application. Tsai Yu-ling, honorary president of the Taiwan Fintech Association, suggested: "Fraud should not be a reason to hinder the development of the virtual asset industry." She advocated the authorization of the parent law and the subdivision of the sub-laws, and cautioned against setting up high walls against foreign operators. Jian Shuyong, director of the Taiwan Virtual Asset Anti-Money Laundering Association, pointed out that the Global Digital Finance (GDF) has made four suggestions on special laws through writing: the wording of special laws can be in line with FATF standards, regulations are formulated according to the principle of proportionality, the benefits of global liquidity are taken into account, and special laws avoid direct copying of EU MiCA provisions. Jian Shuyong reminded that if the requirements of the special law are too high, "Taiwan may become a shallow market." In order to avoid Taiwan becoming a shallow market, it is really necessary to connect and encourage industry players to connect with flexible regulations and open markets with good global liquidity, so that it can truly attract international players with good physique to land in Taiwan. The academic community also proposed a number of supporting facilities: Lin Mengxiang of Mingchuan University advocated the establishment of unified domestic and foreign access standards and sandboxes; Zheng Tingxian of Central University suggested grading according to the scale of the industry to help investors identify risks. Regulatory outline of stablecoins The central bank regards a single fiat currency linked stablecoin as an "electronic payment tokenization tool", while multi-currency or asset linkage requires stricter hierarchical management. The Secretary for Operations, Ms. Tse Fung-ying, reminds that "asset separation and information disclosure are essential to protect the right of redemption." According to market interpretation, once the regulations are formed, the issuance of domestic stablecoins will be monitored by both the capital adequacy ratio and the reserve ratio. The public hearing highlighted the FSC's search for a balance between protecting investors and promoting innovation. With the draft expected to be sent to the hospital at the end of the month, Taiwan will usher in the first set of crypto industry supervision framework that combines international standards and "local characteristics". Related reports Financial management will engage in black boxes? Crypto law public hearing "held in the morning and afternoon", Peng Jinlong: Taiwan's regulation is at the forefront of the world BitoPro and MaiCoin simultaneously stop supermarket payments! Implement the FSC's ban on cash trading cryptocurrencies "Taiwan's Crypto Law Virtual Asset Services Act" public hearing 6 key points: unlicensed businesses if involved in fraud aggravate treatment! This article was first published in BlockTempo's "Dynamic Trend - The Most Influential Blockchain News Media".