Taiwan Legislators Request for Central Authority to Supervise Cryptocurrencies

02/23/2023 11:37 • Blockchain Briefs • 86 views

It is reported that Zeng Mingzhong, a legislator of Taiwan, China and former chairman of the Financial Supervision and Regulation Commission (FSC), said at the meeting that legislators met last month and submitted a request to the Cabinet of the Executive Yuan that Taiwan must authorize the central authority to supervise cryptocurrencies before May 16. Zeng Mingzhong said that the Cabinet may authorize the FSC or the newly established Department of Digital Affairs (MODA) as the central authority to manage the industry.

Taiwan legislator: Taiwan must authorize the central authority to supervise cryptocurrency before May 16

Analysis based on this information:

Taiwanese legislators have sent a formal request to the Executive Yuan to authorize the central authority to oversee cryptocurrencies before the May 16 deadline. Zeng Mingzhong, a Taiwanese legislator and former chairman of the Financial Supervision and Regulation Commission, disclosed this development and highlighted that the Cabinet could designate either the Financial Supervision and Regulation Commission or the newly established Department of Digital Affairs (MODA) as the central authority.

This move aligns with Taiwan’s efforts to regulate cryptocurrency activities in the country. While the country has not completely banned cryptocurrencies, governmental agencies like the Financial Supervision and Regulation Commission noted that they were monitoring the market for any instances of fraudulent activities. In fact, the Taiwanese government amended several financial laws in 2019 to include regulatory measures that require cryptocurrency exchanges to adhere to the same standards as traditional financial institutions.

The involvement of a central authority is crucial when it comes to regulating cryptocurrencies. Given their decentralized and anonymous nature, they are susceptible to fraudulent activities like money laundering, terrorist financing, cyber attacks, and scams. The central authority, in this case, could serve as an oversight body that mitigates these risks and reduces the negative impact of cryptocurrencies on the economy.

The Cabinet’s choice of either the Financial Supervision and Regulation Commission or the Department of Digital Affairs as the central authority could have different implications. If the Financial Supervision and Regulation Commission is designated, it would mean leveraging an existing financial regulator with years of experience in the industry. Conversely, if MODA is chosen, it would signal the Taiwanese government’s commitment to harnessing the potential of technology and digital innovation.

In summary, Taiwan’s move to authorize a central authority to supervise cryptocurrencies is a welcome development for the industry in the country. The involvement of a central authority would boost investor confidence in cryptocurrencies, enable regulatory compliance, and mitigate the risks associated with cryptocurrency usage.

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