Early Implementation of Registration System by Exchange Why the Rush What Impact Might It Bring

What happened?
Peng Chun-Lung, Chairman of the Financial Supervisory Commission (FSC), confirmed yesterday during a hearing at the Legislative Yuan’s Finance Committee that the “Registration System for Cryptocurrency Exchange Operators,” originally scheduled to be implemented on January 1, 2025, will be advanced by one month.
Even if operators are already on the list of compliance declarations, they must complete the registration process again. Once the registration system is officially implemented, operators will have three months to complete the registration, and the system will be formally enforced nine months after registration.
At the same time, the FSC has proposed five major plans and 16 specific strategies to promote Taiwan as the asset management center of Asia, hoping to make the overall system changes felt by all sectors within two years.
Will the registration system be advanced?
Legislator Ko Ju-Chun initiated a question-and-answer session with FSC Chairman Peng Chun-Lung yesterday and raised questions about the registration system for Virtual Asset Service Providers (VASPs).
According to the Anti-Money Laundering Amendment Bill, the originally planned transition from the compliance declaration to the “registration system” on January 1, 2025 has been rumored to be advanced to December 1, 2023, under pressure from the Executive Yuan.
Ko Ju-Chun pointed out that such an early change would have a significant impact on VASP operators, especially the transformation from the compliance declaration system to the registration system, which means that operators who fail to comply may face criminal liability instead of just administrative penalties, which is a major change.
During the questioning, Ko Ju-Chun also expressed 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 policies, operators will find it difficult to trust the government, thus affecting public trust and greatly hindering the development of emerging industries.
FSC Chairman’s response: The necessity of early regulatory amendments
In response to Legislator Ko Ju-Chun’s question, FSC Chairman Peng Chun-Lung responded that the early implementation of the registration system is mainly in response to the urgent need to combat fraud in society, rather than pressure from the Executive Yuan. The most important thing is to make the anti-fraud laws take effect more quickly and protect the rights and interests of the public.
However, the end of the year is the busiest period for operators, especially when complex statutory procedures such as certified public accountant verification are required. Implementing the new system prematurely may cause operational difficulties and lead to operators leaving. Ko Ju-Chun expressed concerns that if early implementation is indeed carried out, it may result in a “double loss” situation for both operators and the government, thereby affecting overall trust.
In response, Peng Chun-Lung stated that after the registration system is officially implemented, operators will have three months to complete the registration, and the system will be formally enforced nine months after registration, minimizing the impact of the new policy on operators.
Next step for Taiwan: 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 Peng Chun-Lung’s visit to the Legislative Yuan’s Finance Committee, the FSC officially announced the specific plan to “Promote Taiwan as the Asset Management Center of Asia,” hoping that within two years, all sectors will feel the changes in the overall system. The FSC will also loosen more than 50 regulatory orders under its jurisdiction.
This includes strengthening the asset management program, promoting inclusive sustainability integration, promoting wealth management, investing in public infrastructure, expanding investment in Taiwan, and five major plans and 16 specific strategies. By loosening policies and providing incentives, the FSC aims to attract domestic and foreign funds to enter Taiwan and lay a solid foundation for future financial development.
Peng Chun-Lung further pointed out 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 USD 1 trillion within six years, emphasizing the slogans “Two Years of Impact,” “Four Years of Change,” and “Six Years of Achievement.”