About virtual asset platform supervision and promotion plan

The Financial Supervisory Commission (hereinafter referred to as the Financial Supervisory Commission) has been designated by the Executive Yuan as the competent authority for virtual asset platforms with financial investment or payment properties. The committee will refer to international supervision trends and strengthen the rights and interests of domestic virtual asset platforms to customers in a step-by-step manner Protect.

The Executive Yuan has previously designated the Financial Supervisory Commission as the competent authority for money laundering prevention of “virtual currency platforms and trading business enterprises” in accordance with the Money Laundering Prevention Act. On June 30, 2010, the Financial Supervisory Commission issued the “Measures for Preventing Money Laundering and Combating Terrorism of Virtual Currency Platforms and Trading Business Enterprises”, requiring domestic industry players to implement customer identity verification, record keeping, and suspicious transaction declarations to prevent money laundering and combat terrorism (hereinafter referred to as AML/CFT) measures. For the purpose of preventing money laundering, the association also continues to urge domestic industry players to implement AML/CFT work, including conducting interviews with industry players, co-organizing seminars with the Money Laundering Prevention Office of the Executive Yuan, and conducting on-site visits to industry players, etc.

Virtual currency is not a currency, it is highly speculative, and it is rarely used for payment purposes. It has been gradually renamed as virtual assets or encrypted assets internationally. Due to recent events such as the bankruptcy of overseas virtual asset exchanges, various countries and relevant international organizations have begun to discuss or adopt supervision regulations for virtual asset operators. The supervision focuses include: customer asset custody, fair and transparent transactions, market integrity, conflict of interest management and information disclosure, etc. Supervision laws and regulations in various countries are still in continuous development.

Considering the trend of international supervisory organizations and competent authorities in various countries to continue to deepen the management of virtual asset platforms and trading business (VASP), the Financial Supervisory Commission will gradually strengthen the protection of domestic virtual asset platforms for customers' rights and interests through the following methods:

1. Establishing guiding principles: In the near future, the Financial Supervisory Commission will formulate the “Guiding Principles for the Management of Virtual Asset Platforms and Trading Businesses (VASP)” in accordance with the provisions of the Money Laundering Prevention Law, supplemented by the principles of strengthening industry self-discipline and information disclosure and transparency. VASP-related information disclosure, commodity off-shelf review procedures, separate storage of assets between customers and platform operators, fairness and transparency of transactions, money laundering prevention, protection of customer (consumer) rights, information security, operating system and hot and cold wallet management and institutional inspection etc. to propose guiding principles for the management structure, so that VASP can follow them, strengthen the protection of customers, enhance the transparency of transactions, and continue to implement the implementation of money laundering prevention.

2. Promote VASP-related associations and other organizations to formulate self-regulatory norms: After the above-mentioned guiding principles are formulated, VASP operators will be invited to promote self-regulation in the industry, and VASP associations (associations) will formulate self-regulatory norms based on the guiding principles. Industry operators, guide them to strengthen internal control, and improve protection of customers' rights and interests.

3. In the future, we will work together with other ministries and committees: Virtual assets involve cross-ministerial business, and all ministries and committees must work together to strengthen the self-discipline maturity and accumulated management experience of domestic VASP operators, and continue to collect and observe the supervision and development of international organizations and competent authorities in various countries Direction, in order to develop the appropriate direction of legal norms.

In view of the recent illegal incidents on foreign virtual asset trading platforms, the Financial Supervisory Commission emphasizes that it will refer to the international supervision trend to propose guiding principles for the domestic VASP management structure in order to protect the rights and interests of customers. In view of the large fluctuations in the price of virtual assets and the high degree of speculation, the Financial Management Committee strongly reminds Chinese people to carefully assess risks when buying and selling virtual assets.