Key Takeaways from the Public Hearing

Introduction

On September 7, Taiwan’s Democratic Progressive Party legislator, Kuo Kuo-wen, organized a public hearing on “Virtual Asset Supervision.” The focal points included the potential creation of a dedicated “Financial Technology Bureau” and the prospect of introducing leveraged derivatives trading. Key representatives from Binance and Bitfinex were present.

Government Voices

Huang Xihe – Financial Supervisory Commission:

• Imminent establishment of the Virtual Currency Business Association.
• Controversial elements of the current draft on autonomous management.
• Challenges in insuring the crypto sector.

Shi Weiren – Digital Department:

• Pushing for the adoption of blockchain technology across sectors.

You Liling – Ministry of Justice:

• Joint efforts with police to combat fraud, emphasizing equal regulatory standards.

Lin Mingjun – Police Department:

• Need for legal supervision to tackle crimes such as fraud, money laundering, and physical crimes.

Industry Insights

Chen Minghui – Maicoin:

• Advocates for special laws and a hierarchical approach to regulation.
• Asset separation may pose operational hurdles.

He Xuanrong – Binance:

• Importance of employee training for transparency.
• Need for cross-field cooperation and diverse team management.

Academic Perspectives

Professor Li Kunzhang:

• Questions about guiding principle standards.
• The need for clear regulation to prevent Taiwan from being sidelined.

Teacher Zang Zhengyun:

• Calls for integrated dispute resolution.
• Advocates for the establishment of a FinTech Bureau.

Associate Professor Xu Peiling:

• Calls for clarity in current guidelines and the consideration of derivatives products.

Association Remarks

Cai Yuling – Taiwan Fintech Association:

• Emphasizes industry dynamism and the need for regulatory flexibility.

Attorney Li Yunheng:

• Hopes for communication between the trade association and ministries.

Lin Hongyu:

• Proposes close ties between authorities and trade associations.
• Highlights the importance of insurance, accounting, and law in future guiding principles.

Legal Views

Cao Weijie:

• Recommends joint discussions for common standards and hierarchical supervision.
• Supports specialized laws and the establishment of a FinTech Bureau.

Xiong Quandi:

• Questions the appropriateness of traditional regulations for cryptocurrencies.
• Advocates for dedicated management agencies and unique laws.

Responses from the Financial Supervisory Commission

Huang Xihe:

• Prioritizes self-regulatory regulations, leaving details to the industry association.
• Discusses the handling of stablecoins and advertising considerations.

Huang Chaobang:

• Updates on the review of anti-cleaning statements.

Conclusion by the Chairman

The meeting underscored the need for practical guiding principles, broader regulations, government-backed industrial development policies, the establishment of a Financial Technology Bureau, and movement towards specialized laws.