With the Rapid Development of Taiwan’s Virtual Asset Market, Legislation is Accelerating
Recently, the office of People’s Party legislator Huang Shanshan (referred to as Shanshan’s office) submitted a version of the “Virtual Asset Service Act” draft. Compared to the version from the administrative department, it features a stronger emphasis on industry support, innovation encouragement, and balanced risk management. In particular, the handling of KOL management, the establishment of dedicated units in regulatory authorities, and the incorporation of sandbox experiment clauses demonstrate a legislative perspective that is closer to practical realities and international trends.
Dedicated Units Incorporated into Law: Balancing Supervision and Development
The Huang Shanshan draft explicitly designates the Financial Supervisory Commission (FSC) as the regulatory authority and further requires the establishment of dedicated units and personnel to enhance supervision and policy execution capabilities. Furthermore, it grants the regulatory authority the responsibility to encourage industry development, allowing for subsidies and recognitions for academic institutions, industries, or individuals.
This approach differs from the official version, which focuses solely on regulatory aspects, reflecting Shanshan’s office’s assertion: “The law should not only prevent malpractice but also provide benefits.”
(Legislator Huang Shanshan’s Crypto Draft Includes KOL Management! Virtual Asset Advertising Chaos Will Be Regulated)
KOL Management: Eradicating Fraudulent Advertising in the Cryptocurrency Sphere
In response to the risks of misleading marketing by KOLs (key opinion leaders) within the cryptocurrency sphere, Shanshan’s office’s draft explicitly defines “key opinion leaders (KOLs)” as subjects of regulation, encompassing those who profit from their influence on platforms such as YouTube, Facebook, Instagram, and X (formerly Twitter) while engaging in virtual asset marketing.
This provision indicates that in the future, KOLs promoting tokens or advertising trading platforms may be required to disclose their partnerships, prohibited from exaggerating returns, and even held jointly liable, officially ushering virtual asset marketing into a new era of compliance.
(Legislator Huang Shanshan’s Crypto Special Law Public Hearing｜FSC Responds to Public, Leaving Space for Crypto Derivatives, Regulation of Influencers Is Feasible)
Connecting Innovative Experiment Sandboxes: Businesses Can Operate After Completing Experiments
To address the gap between innovative experiment regulations (commonly known as sandboxes) and formal regulations, Shanshan’s office’s draft also provides enhancements. The draft stipulates that if businesses complete an innovative experiment approved by the regulatory authority, they can commence operations and apply for permits within six months, obtaining licenses within a maximum of 15 months; those who fail to apply within the specified time will be ordered to exit.
Moreover, it requires the regulatory authority to submit an annual review report to the Legislative Yuan, reflecting the execution of the sandbox and whether legislative adjustments are necessary.
More Detailed Service Types: Covering Financial Derivative Products
Shanshan’s office’s version also expands on the types of “virtual asset services,” adding two major categories: “derivative financial products based on virtual assets” and “other services approved by the regulatory authority,” attempting to incorporate future trends such as DeFi, derivative financial products, and innovative contract platforms in advance to avoid regulatory lag behind practical developments.
Competition in Special Law Legislation: Huang Shanshan’s Version Exhibits Market-Oriented Characteristics
Currently, although the administrative department’s draft has completed its briefing session, the Legislative Yuan version has yet to be finalized. In contrast, Huang Shanshan’s version evidently carries a market-oriented and risk-sharing characteristic: it strives to balance innovation promotion with investor protection, reflecting her office’s grasp of industry dynamics and willingness to participate.
The draft from Huang Shanshan’s office not only represents a political participation statement but also attempts to fill existing regulatory gaps and legislative blind spots. From KOL management to innovative connections, industry subsidies to detailed divisions of labor, this special law draft will undoubtedly become a voice that cannot be ignored during the legislative review process.
Risk Warning
Investing in cryptocurrencies carries a high level of risk, with prices potentially experiencing significant fluctuations, and you may lose all your principal. Please assess risks cautiously.