FSC confirmed! Taiwan's VASP registration system will be implemented ahead of schedule, but legislators are concerned about 2 major issues.

Regarding the implementation timeline of the registration system for Virtual Asset Service Providers (VASPs) in Taiwan, Kuomintang legislator Ke, Juin-Chun recently expressed concerns to Financial Supervisory Commission Chairman Thomas Huang. Ke, Juin-Chun pointed out that the originally scheduled VASP registration system, set to begin in January 2025, may be advanced to December 1, 2024, due to pressure from the Executive Yuan, which would have a significant impact on both the industry and regulation. Thomas Huang clarified that it is not due to pressure from the Executive Yuan, but to accommodate the strong societal demand for fraud prevention.

Ge Rujun questioned the early implementation of the registration system

KMT legislator Ke Ju-jun questioned Financial Supervisory Commission Chairman Peng Chun-lung about the early implementation of the Virtual Asset Service Providers (VASP) registration system. According to the Anti-Money Laundering Amendment Bill, which came into effect in August this year, VASP operators need to switch from the original method of legal declaration to a registration system. According to the plan, the registration system should be officially implemented in January 2025, but recent reports have suggested that under pressure from certain individuals, the Executive Yuan may bring forward the implementation date by one month to December 1, 2024. He emphasized that the one-month advance would have a significant impact on operators, especially as the registration system involves criminal liability, which significantly increases legal responsibility compared to previous administrative penalties.

Ge Rujun further pointed out that this hasty policy change is inconsistent with the principle of protection of trust and makes it difficult for operators to adapt to the sudden policy changes of the government, thereby affecting their business confidence. He called on the Chairman of the FSC to fight for the implementation of the registration system according to the original plan, in order to avoid sudden changes.

Peng Jinlong clarifies: Early implementation is in response to social needs.

In response, Financial Supervisory Commission Chairman Kung-Lung Peng stated that the early implementation of the registration system was not due to pressure from the Executive Yuan, but to meet the society's demand for anti-fraud measures. He pointed out that the VASP registration system is part of the anti-fraud related laws, and there is a strong demand from all sectors of society for fraud prevention, so it is hoped that relevant regulations can be implemented as soon as possible. He emphasized that the purpose of early implementation is to enhance the efficiency of fraud prevention, which is also the direction widely supported by society at present.

Peng Jinlong added that after the implementation of the registration system, operators will have three months to complete the registration process, and the formal implementation will only take place nine months after the registration, providing a sufficient buffer period. He thanked VASP operators for their cooperation and efforts, and emphasized that the FSC has tried its best to minimize the impact of this policy on operators.

Ge Rujun is worried about manpower and operational difficulties

Despite Peng Jinlong's statement that the registration system has an adequate buffer period, Ge Rujun still expresses concern about the hasty implementation of the policy. He emphasizes that operators need to submit internal control mechanisms and payment-related information when preparing registration data. This information needs to be certified by an accountant, and with the busy period for operators at the end of the year, the early implementation of the policy may lead to operators being unable to cope properly, resulting in a lose-lose situation for both sides.

Kerwin Ko also pointed out that there is a lack of manpower within the FSC to handle the registration of VASPs. This issue has been raised in previous interpellations, and the Premier is also aware of the situation. He is concerned that if the policy is rushed, both the FSC and the industry will face tremendous pressure. He urged the FSC chairman to actively reflect to the Executive Yuan and strive to implement the registration system according to the original schedule.

Peng Jinlong promises to reflect opinions

In the face of Ge Rujun's questioning, Peng Jinlong promised to reflect his opinions to the Executive Yuan and emphasized that the FSC has made efforts to minimize the impact of policies on operators. He pointed out that during the policy announcement period, the FSC has provided relevant forms and documents, and ensured that operators have sufficient time to prepare during the transition period. He once again affirmed the cooperation and efforts of the operators, stating that he will continue to pay attention to the implementation of the registration system.

In summary, there is still controversy over the early implementation of the VASP registration system. Although the FSC chairman emphasized that this is in response to the demand for anti-fraud in society, legislators and industry players have expressed many concerns about this. Whether the FSC will make adjustments based on industry feedback remains to be further observed.

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