Early Implementation of Exchange Registration System Why the Rush and Potential Impacts

What happened?
Chen Jiann-Rong, the chairman of the Financial Supervisory Commission (FSC), confirmed during his questioning at the Legislative Yuan’s Finance Committee on the 24th that the “Registration System for Cryptocurrency Exchange Operators,” originally scheduled to be implemented on January 1, 2025, will be moved forward by one month.
Even if operators are already on the list of compliant declarations, they must complete the registration process again. After the registration system is officially implemented, operators will have three months to complete the registration, and it will be nine months after registration before it is officially enforced.
At the same time, the FSC has also proposed five major plans and 16 specific strategies to promote Taiwan as the asset management center of Asia, with the hope of making stakeholders feel the changes in the overall system within two years.
Will the registration system be implemented ahead of schedule?
Legislator Ko Ju-Chun initiated questioning against FSC Chairman Chen Jiann-Rong on the 24th, focusing on the registration system for Virtual Asset Service Providers (VASPs).
According to the Anti-Money Laundering Amendment Draft, the original compliant declaration was scheduled to be implemented as the “Registration System” on January 1, 2025. However, there have been rumors that under pressure from the Executive Yuan, it may be implemented ahead of schedule on December 1, 2023.
Ko Ju-Chun pointed out that this early change would have a significant impact on VASP operators, especially since the shift from compliant declaration to registration system means that operators who fail to comply will no longer face only administrative penalties but may face criminal liability. This is a major reform.
Ko Ju-Chun also stated during the questioning that operators are generally willing to cooperate with the government but hope to have sufficient preparation time to ensure the smooth implementation of the new law. He further pointed out that if the government keeps changing its policies, operators will find it difficult to trust the government, which will in turn affect public trust and be extremely detrimental to the development of emerging industries.
FSC Chairman’s response: The necessity of early regulatory revisions
In response to Ko Ju-Chun’s questioning, FSC Chairman Chen Jiann-Rong responded that the early implementation of the registration system is mainly in response to the urgent need to combat fraud in society and not due to pressure from the Executive Yuan. The most important thing is to allow the anti-fraud laws to take effect more quickly and protect the rights and interests of the people.
However, the end of the year is the busiest period for operators, especially with complex statutory procedures such as requiring auditor certification. Haphazardly implementing the new system ahead of schedule may lead to operational difficulties and operators leaving. Ko Ju-Chun is concerned that if early implementation occurs, it may result in a “double loss” situation for both operators and the government, which will further affect overall trust.
In response to this, Chen Jiann-Rong stated that after the registration system is officially implemented, operators will have three months to complete the registration, and it will be nine months after registration before it is officially enforced, minimizing the impact of the new policy on operators.
Taiwan’s Next Step: Becoming the Asset Management Center of Asia
In addition to regulating VASP operators, the FSC is actively promoting Taiwan as the asset management center of Asia.
During Chen Jiann-Rong’s visit to the Legislative Yuan’s Finance Committee, the FSC officially announced its plan to “Promote Taiwan as the Asset Management Center of Asia,” hoping to make stakeholders feel the changes in the overall system within two years and relax more than 50 regulations and orders issued by the FSC.
This includes strengthening the asset management program, promoting inclusive sustainable integration, facilitating wealth management, promoting investment in public construction, expanding investment in Taiwan, and five major plans and 16 specific strategies. By loosening policies and providing incentives, the FSC aims to guide domestic and foreign funds into Taiwan and establish a solid foundation for future financial development.
Chen Jiann-Rong further stated that the FSC hopes to increase Taiwan’s asset management scale by NT$5 to 6 trillion within two years, NT$10 to 12 trillion within four years, and $1 trillion within six years, and has called out the slogan “Feel the Change in Two Years,” “Transform in Four Years,” and “Succeed in Six Years.”