What happened?
Peng Chunhong, Chairman of the Financial Supervisory Commission (FSC), confirmed during a questioning session at the Legislative Yuan’s Finance Committee yesterday (24th) that the “Registration System for Cryptocurrency Exchange Operators” originally scheduled to be implemented on January 1, 2025, will be implemented one month in advance.
Even if the operators are already on the list of compliance declarations, they must complete the registration process again. After the registration system is officially implemented, operators will have three months to complete the registration, and the official implementation will take place nine months after the registration.
At the same time, the FSC also proposed five major plans and 16 specific strategies to promote Taiwan as an Asian asset management center, hoping that the overall system change can be felt by all sectors within two years.
Will the registration system be implemented in advance?
Legislator Ge Ru-jun launched a questioning session to FSC Chairman Peng Chunhong yesterday (24th), focusing on the registration system for Virtual Asset Service Providers (VASPs).
According to the draft amendment to the Anti-Money Laundering Act, the implementation of the “Registration System” was originally scheduled to be changed from the compliance declaration to the registration system on January 1, 2025. However, there are rumors that under pressure from the Executive Yuan, it may be implemented on December 1, 2023.
Ge Ru-jun pointed out that such early changes would have a huge impact on VASP operators, especially the change from compliance declaration to registration system, which means that operators who fail to comply may face criminal liability instead of just administrative penalties. This is a significant transformation.
Ge Ru-jun also stated during the questioning session that operators are generally willing to cooperate with the government, but they also hope to have sufficient preparation time to ensure the smooth implementation of the new law. He further pointed out that if the government frequently changes its policies, operators will find it difficult to trust the government, which will in turn affect public trust and be extremely detrimental to the development of emerging industries.
FSC Chairman’s response: The necessity of early regulatory revisions
In response to Legislator Ge Ru-jun’s questioning, FSC Chairman Peng Chunhong responded that the early implementation of the registration system is primarily in response to the urgent need in society to combat fraud, not pressure from the Executive Yuan. The most important thing is to make the anti-fraud laws effective more quickly and protect the rights and interests of the people.
However, the end of the year is the busiest period for operators, especially with complex statutory procedures such as requiring accountant certification. Implementing the new system hastily may lead to operational difficulties and operators leaving. Ge Ru-jun is concerned that if the early implementation does happen, it may result in a “double loss” situation for both operators and the government, thereby affecting overall trust.
In response to this, Peng Chunhong stated that after the registration system is officially implemented, operators will have three months to complete the registration, and the official implementation will take place nine months after the registration, minimizing the impact of the new policy on operators.
Taiwan’s Next Step: Becoming an Asian Asset Management Center
In addition to regulating VASP operators, the FSC is actively promoting Taiwan as an Asian asset management center.
During Peng Chunhong’s visit to the Legislative Yuan’s Finance Committee, the FSC officially announced the specific plan for “Promoting Taiwan as an Asian Asset Management Center,” hoping to bring about overall institutional changes within two years and loosen regulations from more than 50 FSC supervisory orders.
This includes strengthening asset management programs, promoting inclusive and sustainable integration, promoting wealth management, investing in public construction, expanding investment in Taiwan, and other five major plans and 16 specific strategies. By loosening policies and providing incentives, the FSC aims to attract domestic and foreign funds into Taiwan and lay a solid foundation for future financial development.
Peng Chunhong further pointed out that the FSC hopes to increase Taiwan’s asset management scale by NT$5 to 6 trillion within two years, increase it by NT$10 to 12 trillion within four years, and increase it by $1 trillion within six years, advocating the slogan of “Two Years of Impact,” “Four Years of Change,” and “Six Years of Achievement.”
