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Tuesday, June 25, 2024

Are cryptocurrencies regulated by the FSC? Huang Tianmu: Will play a certain role

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The FTX bankruptcy has rocked the market and prompted countries to strengthen their regulatory efforts, but the authority for cryptocurrencies in Taiwan is not yet clear. In this regard, Huang Tianmu, chairman of the Financial Regulatory Commission, said yesterday (2) that the Executive Yuan is making a final decision, and it is expected that there will be results in the short term, and he believes that the FSC will play a certain role.

According to comprehensive media reports, legislator Guo Guowen paid attention to the progress of Taiwan’s supervision of cryptocurrencies when questioned by the Finance Committee of the Legislative Yuan, and since the FSC currently only manages money laundering prevention, he believes that cryptocurrencies should also be legalized in the future.

Legislator Tsang Mingzong believes that according to the Organic Law of the Ministry of Digital Development, it is to assist digital development and should be managed by the Ministry of Digital Development. If it is managed by the FSC, it may be managed from the perspective of a licensed industry, which will become conservative and stricter, which is not conducive to the development of the industry.

Huang Tianmu said that the FSC is basically in charge of licensed industries, but there are differences in the degree of supervision.

Huang pointed out that in the past two years, some high-profile cases in the cryptocurrency field have made global regulators want to manage them in a more prudent manner.

Guo Guowen suggested that in the future, cryptocurrency regulation can be considered in five major directions: ensuring physical contact channels, risk management, strict control of real-name authentication (KYC), establishing a compensation mechanism for retail investors, and establishing token inclusion standards. However, Huang Tianmu said that at present, no country has established a compensation mechanism for cryptocurrencies.

Legislator Tsang Mingzong has proposed the main resolution in the past, which has won the support of the government and the opposition. According to this resolution, the Executive Yuan is bound to draft a cryptocurrency authority by May 5 this year, which may be the FSC (focusing on supervision) or the Ministry of Digital Development (assisting in industrial development).

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