Peng Jinlong, Chairman of the Financial Supervisory Commission of Taiwan: The special law will be submitted to the Executive Yuan in June next year, adhering to the principle of 'safety and development' in regulating VASP

Peng Jinlong, Chairman of the Financial Supervisory Commission of Taiwan, pointed out during his speech at the 'FinTechOn 2024 Annual Forum' on the 4th that the Financial Supervisory Commission currently adopts a method of advancing both safety and development regarding the supervision of virtual asset operators. The special law on virtual asset management will be submitted to the Executive Yuan in June next year to initiate the legislative process.

Peng Jinlong, Chairman of the Financial Supervisory Commission

Peng Jinlong stated that Taiwan has a certain foundation and technical capability in developing the virtual asset industry, and the relevant infrastructure is relatively complete. It is expected that this industry has significant development potential in the future. The Financial Supervisory Commission currently adheres to the spirit of advancing both safety and development in the establishment of virtual asset operators (VASP), continuously promoting various regulatory measures, hoping to bring more cooperation and consensus to this industry. Most importantly, it aims to enhance the legality, standardization, and sound development of this industry, while improving the protection of the rights of future investors and consumers.

Peng Jinlong pointed out that Taiwan, like many other advanced countries, adopts a 'gradual regulatory' approach. Starting with anti-money laundering, it requires the implementation of legal compliance, followed by a gradual opening of business, mainly promoting four phases of management. The first phase involves regulating VASP with anti-money laundering measures; the second phase hopes to establish associations through VASP to enhance the industry's activities through self-discipline; the third phase aims to strengthen the registration system of VASP for anti-money laundering through legislation and include the 'anti-fraud special law' to enhance behavioral management; the fourth phase will submit the special law on virtual asset management to the Executive Yuan in June next year (2025) to begin the legislative process.

Virtual assets have brought many new developments, but they also bring many possibilities for fraud. 'We need to take more proactive actions against fraud,' Peng Jinlong said, adding that 'fighting fraud is definitely a long-term battle.' Future anti-fraud efforts must move toward professionalization, normalization, and sustainability, and must be organized.

Peng Jinlong mentioned that in the future, financial institutions and VASPs will be encouraged to vigorously develop anti-fraud technologies using applied technology and the power of technology, with teams working together to combat fraud. 'In the future, our industry should strive more in this direction.'

Regarding normalization, Peng Jinlong stated that anti-fraud must definitely be integrated into all future operational activities. Awareness of any suspicious account's abnormal transactions, as well as customer education and training, must become the DNA of the industry, embedded into all operational activities. 'Fighting fraud is definitely a long-term battle, and we must have the determination to continue fighting against fraud.'

Regarding the organizational aspect, Peng Jinlong pointed out that today's scams have already become professionalized, organized, and industrialized. Whether it is financial institutions or VASP operators, there is a greater need for a complete organization in combating and preventing fraud, as well as concentrating resources for joint anti-fraud efforts to achieve more with less.

"Peng Jinlong, Chairman of the Financial Supervisory Commission of Taiwan: The special law will be submitted to the Executive Yuan in June next year, adhering to the principle of 'safety and development' in regulating VASP" This article was first published in (Block Client).