Cross-Border Dialogue: Focus on the Development of Digital Asset Compliance and Regulation
The “Forum on the Development and Practice of Digital Asset Compliance and Regulation,” co-organized by the Digital Asset Development Research Center and the Financial Technology Center of the Institute for Information Industry, and hosted by the global verification platform Sumsub, was held in Taipei on August 7. The event gathered representatives from legislation, judiciary, regulatory bodies, and industry to discuss international trends and local challenges in the digital asset market, creating a vibrant atmosphere.
Legislator Ko Chih-kung emphasized in his speech that digital assets have become an indispensable part of the global financial system, and Taiwan should seize the opportunity to accelerate the establishment of a transparent and sound market structure. He also stressed that the stability of the system and the innovation of the industry are not opposing forces, but directions that can be advanced simultaneously.
The forum covered topics ranging from regulatory trends and judicial practices to technological applications. FinTech compliance consultant Yang Ping-che analyzed the current focus of international organizations on virtual asset legislation and pointed out that most countries have begun to incorporate virtual assets into their regulatory scope, indicating that Taiwan must align with international standards.
Prosecutor Hung Min-chao from the Taiwan High Prosecutors Office addressed the practical side, explaining that cases related to virtual asset fraud are increasing. He urged VASP operators to implement risk identification and mitigation mechanisms to reduce the likelihood of becoming a breeding ground for fraud. He also noted that the risks associated with stablecoins and cross-border fund flows will be key areas of focus for the judiciary in the future.
The second half of the forum featured industry representatives. Kao Huang-chuan, COO of Cross-Chain Technology, shared the challenges and limitations faced by enterprises in implementing compliance, indicating that every step from real-name systems, KYC, to cross-border cooperation requires a joint support of systems, technology, and trust.
Chuan Wee Lye, Senior Business Manager at Sumsub, introduced the current practices of implementing the Travel Rule globally, using examples from the European and Asian markets to illustrate how financial institutions can enhance data transparency and compliance efficiency through technological integration.
The closing panel discussion, hosted by Guo Mao-ren, Deputy Executive Director of the Digital Asset Development Research Center, invited all speakers to discuss the balancing act between regulation and industry in Taiwan. Participants generally agreed that during this phase of gradually clarifying regulations, cross-border dialogue and practical implementation will be the most critical driving forces moving forward.
The Digital Asset Center also stated that it will continue to promote alignment with international dialogue, fostering substantial cooperation among regulatory bodies, the judiciary, and the industry, to assist Taiwan in establishing a firm foothold in the global digital asset market.