The Lunar New Year is approaching, and the Taiwan stock market will enter an 11-day Lunar New Year holiday period after the close on this (22nd) day. The Taiwan Stock Exchange Capitalization Weighted Stock Index also closed in the green today, bringing a good start to the new year for Taiwan stock investors, closing at 23,525 points, up 225 points (0.97%).
After the Taiwan stock market closed, the Financial Supervisory Commission immediately held a Lunar New Year press conference presided over by Chairman Teng-cheng Peng at 2 pm, during which the Financial Supervisory Commission reported on many major financial measures, including the "Virtual Asset Act" and "Stablecoin Regulation".
Virtual Asset Act to be Submitted for Review in June, Stablecoins to be Included in Regulation
At the press conference, Zhang Zhen-shan, Director-General of the Securities and Futures Bureau, first stated that the virtual currency platform and trading business (VASP) has entered the fourth stage, and Taiwan will have a formal Virtual Asset Act. Zhang Zhen-shan plans to invite experts, scholars, the VASP Association, and relevant units to hold a public hearing and discussion in February, and make a regulatory pre-announcement in March, with the hope of submitting the draft Act to the Executive Yuan for review by the end of June this year.
It is understood that the current draft Act includes chapters on general provisions, virtual asset service providers, the VASP Association, issuance and management of stablecoins, regulatory and supervisory mechanisms, penalties, and supplementary provisions. The key points of VASP supervision include organizational form, capital, personnel qualifications, financial reporting, and customer protection.
In addition, FSC Chairman Teng-cheng Peng pointed out that in terms of stablecoin regulation, they will collaborate with the Central Bank to manage it, with the Central Bank fully managing the digital currency (CBDC), while stablecoins will be jointly managed by the FSC and the Central Bank. Peng also defined stablecoins as a bridge between virtual assets and legal tender:
Stablecoins are a bridge between virtual assets and legal tender, and we will take proactive measures in the Virtual Asset Act.
Peng Teng-cheng: The Registration System for Operators is an "Upgraded Version" of Anti-Money Laundering
Peng Teng-cheng further stated that the previous registration system for operators can be seen as an upgraded version of anti-money laundering. Since the Virtual Asset Act has not yet been implemented, there has not yet been formal supervision and guidance for operators.
He believes that after the establishment of the Virtual Asset Act, the regulation of key points such as establishment conditions, standards, qualifications of initiators, and business models will lead to a gradual consolidation of the number of cryptocurrency operators. With the inclusion of operators in the management system, their operating costs will correspondingly increase, but this will also help improve service quality and further promote the standardization, normalization, and regularization of the industry.
On the other hand, regarding the relaxation of professional investors' investment in Bitcoin ETFs, Peng Teng-cheng stated that they will first set a six-month observation period, and then decide whether to further open it up after evaluating the overall market performance.
