Chairman of the Financial Supervisory Commission, Peng Jinlong, today (6/12) at the Finance Committee inquiry, responded to a question from legislator Qiu Zhiwei, stating that the current regulations for Virtual Asset Service Providers (VASPs) are nearing completion in the first phase of “regulating virtual asset operators.” Chairman Peng Jinlong mentioned that the VASP association will also be established tomorrow (6/13), with self-regulation standards to be jointly formulated by operators and the Financial Supervisory Commission. However, the question remains whether operators not registered in Taiwan will have an easier time.
Special legislation on virtual asset management is on the way: FSC announces a four-stage management plan, to be submitted to the Executive Yuan in June 2025.
The current regulations mainly focus on registering VASP operators in Taiwan. Legislator Qiu Zhiwei inquired, “What if a company is registered overseas but operates in Taiwan?”
Chairman Peng Jinlong explained that according to regulations, all cross-border operators should have a presence in Taiwan and comply with anti-money laundering and counter-terrorism financing regulations. Overseas operators not registered in Taiwan pose challenges in supervision due to the borderless nature of the internet, requiring international cooperation for oversight.
Legislator Qiu Zhiwei questioned the discrepancy in regulations between registered operators in Taiwan and those operating overseas without registration.
Chairman Peng Jinlong acknowledged the difficulty in international supervision, citing the example of Taiwanese buying insurance products from a U.S. website, which Taiwan’s laws cannot prohibit. The FSC can only advise investors against such actions.
Peng Jinlong promised to propose measures in the version of the special law submitted to the Executive Yuan next year, taking into account how other countries handle overseas operators without registration.
Previously, the FSC had mentioned that unregistered operators would face criminal liability, but this only applies to companies registered in Taiwan. Enforcement is limited for overseas operators who operate and promote their services in Taiwan without registration. Enforcement investigations can only be carried out on employees or partners in Taiwan, but looking at past cases such as FTX, JPEX, and AAX, there have been no actual enforcement actions or penalties.