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. Chen Minghui, Chief Operating Officer of MaiCoin, presented legal opinions, which included issues such as derivatives trading such as perpetual contracts that have not yet been opened in many countries around the world, as well as the current difficulties in cooperation between exchanges and banks.
(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 Administration)
Gradually introduce specialized methods
Chen Minghui, chief operating officer of MaiCoin, advocates that before introducing special laws, hierarchical management should be carried out to determine business classification and business scope. It is recommended that currency merchants or exchanges with pure spot transactions adopt a registration system and carry out hierarchical management based on business scale.
Simplifying the system: eliminating trusts for agent trading
MaiCoin Chief Operating Officer Chen Minghui said that currency merchants or exchanges that buy and sell on behalf of others can adopt a simplified system that does not require trust, but requires information security management. When the business scale reaches a certain level, self-regulatory norms and guidelines should be followed.
Open derivatives business to increase industry income
Chen Minghui, chief operating officer of MaiCoin, suggested that businesses including derivative financial products, such as ETFs, dual-currency options and perpetual contracts, should be opened up during special legal management. The tiers of business size, capital amounts and shareholder structures need to be clarified so that operators can survive and thrive while complying with regulations.
Virtual asset operators are subject to regulatory authority
She emphasized the step-by-step approach, the introduction of specialized bureau management to reduce communication costs, and professional management when supporting measures are available.
Anti-fraud and joint prevention mechanisms need to be improved
It said that while it appreciated the cooperation between the Financial Supervisory Commission and the Procuratorate and Police on the real-name system and AML tracking, it pointed out that notification alone was not enough. It is hoped that VASP operators and financial institutions can jointly defend themselves more efficiently, including verifying the authenticity of passbook details and tracking the flow of funds.
In addition, the industry also hopes that after reporting risks, the prosecutors and police investigators will respond within a certain period of time on how the case will be handled. Otherwise, the industry can only wait, not knowing when the funds can be unfrozen or any disposal should be made. She recommended establishing clear norms so that operators can explain to customers the reasons for freezing funds and reduce customer complaints.
Anti-fraud is expected to increase communication among various roles
She put forward specific operational suggestions on how industry operators should cooperate with financial institutions, prosecutors and police after discovering problems. He believes that a more efficient way to combat fraud is through joint prevention and communication between financial institutions, prosecutors and police, as well as industry players.
(Public hearing｜Experts offer five suggestions, Financial Supervisory Commission: As long as they comply with regulations, all companies can apply for stock listing (IPO))
This article Taiwan Special Law Public Hearing｜MaiCoin: It is recommended to open perpetual contracts and industry hierarchical management first appeared on Chain News ABMedia.
