Taiwan’s Financial Supervisory Commission (FSC) convened a public hearing with committee member Luo Mingcai, who invited representatives from the Financial Supervisory Authority, major virtual currency operators in Taiwan, and relevant experts and scholars. MaiCoin’s COO, Chen Minghui, presented his opinions on the legislation, which included the trading of derivative products such as perpetual contracts, which are not yet available in many countries, as well as the difficulties in cooperation between exchanges and banks.
Contents:
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Gradual Introduction of Legislation
Streamlining the System: Excluding Trusts from Proxy Trading
Opening Derivative Business to Increase Operators’ Revenue
Virtual Asset Operators to be Managed by a Special Agency
Improvements Needed in Fraud Prevention and Joint Defense Mechanisms
Hoping to Increase Communication among Various Roles in Anti-Fraud Efforts
MaiCoin’s COO, Chen Minghui, advocated for a phased management approach before introducing legislation, which involves determining business classifications and scopes. He suggested that pure spot trading cryptocurrency dealers or exchanges adopt a registration system and be managed according to their business scale.
MaiCoin’s COO, Chen Minghui, stated that dealers or exchanges engaged in proxy trading can adopt a simplified system without the need for trusts, but they must implement cybersecurity management. When the business scale reaches a certain level, they should comply with self-regulation norms and guidelines.
MaiCoin’s COO, Chen Minghui, recommended opening up businesses, including derivative financial products such as ETFs, dual currency options, and perpetual contracts, under the legislation. Clear levels of business scale, capital requirements, and shareholder structures are needed to enable operators to survive and develop while complying with regulations.
She emphasized a gradual and phased introduction of specialized agency management to reduce communication costs and enable professional management when support measures are in place.
MaiCoin expressed gratitude for the cooperation of the FSC and law enforcement agencies in implementing real-name systems and anti-money laundering (AML) tracking. However, it pointed out that relying solely on reporting is insufficient. It hopes that VASP operators and financial institutions can enhance joint defense more efficiently, including verifying the authenticity of bank statements and tracking fund flows.
In addition, operators also hope that law enforcement agencies can respond to reported risks within a certain timeframe. Otherwise, operators can only wait without knowing when funds will be unfrozen or any further actions can be taken. She suggested establishing clear norms to allow operators to explain to clients the reasons for freezing funds and reduce customer complaints.
She also provided specific operational suggestions on how operators can collaborate with financial institutions and law enforcement agencies after discovering issues. She believes that more effective anti-fraud efforts rely on joint defense and communication among financial institutions, law enforcement agencies, and operators.
Public Hearing | Experts Provide Five Recommendations, FSC: As Long as Operators Comply, They Can Apply for IPO Listing
MaiCoin
Public Hearing
Phased Management
Perpetual Contracts
Further Reading:
Binance’s perpetual contract market mishap leads to BTC price exceeding $400,000
Coinbase gains regulatory approval, allowing international exchanges to offer retail perpetual contract trading