Legislator Huang Shanshan's public hearing on the encryption special law｜The Financial Supervisory Commission's Securities and Futures Bureau responds to the public, allowing space for encryption derivation products, regulating contracts between influencers and businesses.

Taiwan People's Party legislator Huang Shanshan convened a public hearing on the special law for Crypto Assets at the Legislative Yuan on 4/1. After accepting opinions from industry participants and the public, the Financial Supervisory Commission, the Securities and Futures Bureau, the ( VASP regulatory authority, and representatives from the Central Bank responded.

Vice Chairman of the Financial Supervisory Commission Chen Yanliang: Crypto Assets operators are part of the financial industry, and providing trust is the top priority.

The Vice Chairman of the Financial Supervisory Commission, Chen Yanliang, stated that crypto assets operators will be regarded as part of the financial industry; however, trust is the top priority, and regulatory intervention is also aimed at creating higher market trust.

He believes that there can be multiple paths to achieve more detailed regulation, such as: Financial Consumer Protection Law, Virtual Currency Service Act, and self-regulatory standards.

Regarding the current draft of the special law, some industry players have pointed out that there are no explicit regulations on cybersecurity, while the version proposed by the People's Party legislator Huang Shanshan includes this aspect, and the Financial Supervisory Commission has also expressed its agreement.

In response, industry players stated that OTC merchants, individual coin dealers, and other small to medium-sized businesses are facing issues due to the suppression by specialized laws. Deputy Commissioner Chen Yanliang stated that for individual coin dealers, the delineation drawn is to provide services to unspecified persons, which falls under VASP ) Virtual Asset Service Providers (; regarding the requirements for tiered management, this qualification specification issue also needs to consider the overall situation of anti-money laundering and anti-fraud.

When it comes to RWA ) real-world assets ( issues, there is still no conclusion on regulation, but it is currently proposed that if it involves securities and bonds, it will revert to the laws of various industries. At present, there are also POCs working on three cases regarding RWA, conducted by traditional financial institutions, such as Cathay Bank, which is conducting experiments on domestic securities, foreign debt, and funds, etc. This is also a relatively easy-to-define type.

Hong Houming, Deputy Director of the Securities and Futures Commission: Management of internet celebrities in the coin circle refers to the Investment Advisory Act, considering contractual penalties for operators.

The Deputy Director of the Securities and Futures Commission, Huang Houming, stated that he believes the considerations for VASP operators will revolve around KYC ) Know Your Customer ( KYP ) Know Your Product (, internal control and inspection within the company, and personnel management, among other things. How these licensed businesses are managed, as long as they are involved with securities and futures operators, will also be subject to subsidiary law management.

Influencer management will currently also refer to the Investment Trust and Consulting Act for management, depending on the contractual agreement between the business and the influencer, to determine whether there are any violations of regulations, and the business should take responsibility.

Regarding the market manipulation and fraud issues mentioned in Huang Shanshan's version, the specialized law will stipulate how to manage it (Article 36), and the parent law should not be too detailed, with the subsidiary law providing additional details. There are also relevant measures in the anti-fraud regulations.

Some industry players mentioned that regulatory hurdles hinder innovation. Deputy Director Huang Houming stated that this year, there will be further discussions on amending the experimental innovation regulations, considering whether there are applicable provisions for small-scale crypto payment businesses and other related services.

Next, regarding the demand for virtual currency derivatives ), such as contract trading (, regulations will be established in the future, retaining the possibility in the legal provisions. Sub-laws will have tiered management, similar to the different scale issuance of restrictive licenses for securities proprietary traders.

In the current draft of the special law, the rights and obligations between exchanges and virtual currency custodians will be divided according to contracts, but the responsibility for customer protection cannot be avoided.

This article discusses Legislative Member Huang Shanshan's public hearing on the Crypto Assets Special Law | The Financial Supervisory Commission's Securities and Futures Bureau responds to the public, indicating that there is room for crypto derivatives, and early regulation of contracts with influencers and businesses appeared in Chain News ABMedia.