Luo Mingcai, convener of Taiwan’s Finance Commission, convened the Financial Supervisory Commission, Taiwan’s major virtual currency operators, and relevant experts and scholars to hold a public hearing on the special law. Xrex Chief Revenue Officer - Xiao Huizhong, on behalf of TFTA (Taiwan Fintech Association), explained the self-discipline situation of Taiwanese industry operators and their efforts to combat fraud.
(Member Luo Mingcai: The progress of the special law is too slow. There are only six people in charge of the Financial Supervisory Commission. They will discuss the Virtual Asset Management Bureau)
(Taiwan Special Law Public Hearing｜MaiCoin: It is recommended to open perpetual contracts and hierarchical management of industry players)
Taiwanese businesses demonstrate self-discipline and practical actions
Xrex Chief Revenue Officer - Xiao Huizhong said that in order to cope with industry headwinds and social issues, industry players have demonstrated self-discipline, such as formulating real-name verification standards. All industry players are fully engaged, demonstrating the energy and achievements of Taiwanese industry players and proving that the industry has achieved remarkable results in a short period of time.
Self-discipline and technology fight fraud
He believes that the regulatory needs of the virtual asset industry stem from global issues, such as the FTX incident. In fact, technology can effectively combat fraud without necessarily tightening regulations. Although Singapore has stricter regulations, its fraud problem is worse.
The establishment and self-discipline of the association
He said that on March 25, the Ministry of Interior officially issued a letter approving the establishment of the association. During the formulation process of self-regulatory regulations, industry players can provide opinions, and the goal is to establish an association within three months. Many difficulties were encountered during the establishment of the association, but through cooperation with the Ministry of the Interior and the Financial Supervisory Commission, the problems were gradually solved.
Formulation of charter and classification of business operators
He explained that the charter divides business operators into three categories (ABC) and ensures a balance among different types of business operators in the appointment of directors and supervisors. The charter was formulated through continuous communication with the Ministry of Home Affairs and the Financial Supervisory Commission, which ultimately settled the dispute and ensured a balance of interests of all parties.
The efforts and innovation of Taiwanese industry players
Xrex Chief Revenue Officer – Xiao Huizhong mentioned that Taiwanese companies are actively developing anti-fraud technology and providing free-to-use tools. TFTA (Taiwan Fintech Association) is cooperating with many world-renowned companies to jointly promote the implementation of anti-fraud measures. He emphasized the importance of money laundering and fraud prevention and industry joint defense, as well as entrepreneurial standards that meet Taiwan's needs. Industry players have invested significant resources and demonstrated the potential of self-discipline and technology.
Compliant exchanges prevent users from switching to high-risk platforms
Emphasizing the importance of compliant exchanges and mentioning the challenges posed by underground exchanges. Compliant exchanges can effectively warn and notify fraudulent activities, and cooperate with law enforcement authorities to investigate and track.
Technological Breakthrough: Fighting Fraud with AI
He mentioned that some industry players have developed AI recognition modules that can efficiently identify and warn against fraud, and emphasized the innovation and technological leadership of Taiwanese industry players in the global anti-fraud field.
Judicial cooperation and asset recovery
He mentioned the close cooperation with the international anti-fraud organization FTAF to achieve mutual legal assistance and asset freezing, and emphasized the offensive anti-fraud strategy, which is to deter fraud by freezing and recovering large amounts of funds.
Future Outlook: Exchanges achieve upstream and downstream integration
Xrex Chief Revenue Officer – Xiao Huizong said that the focus of future work is to integrate energy technology and data to create regulatory conditions. Upstream and downstream integration and risk management of exchanges need to be achieved to develop a healthy virtual asset trading ecosystem.
This article Taiwan Special Law Public Hearing｜Xrex Chief Revenue Officer Xiao Huizong: Taiwanese industry players’ technology can combat fraud, and supervision should focus on developing industry integration. First appeared on Chain News ABMedia.
