The Taiwan Academy of Banking and Finance yesterday explored the future of cryptocurrency regulation at a forum in Taipei, as the asset class continues to make headlines amid concerns.
In light of last month’s cyberheist at Coincheck Inc, an online cryptocurrency exchange based in Japan, the blueprint for a regulatory system for the virtual asset must ensure information security and protection for consumers, Financial Supervisory Commission Vice Chairman Cheng Cheng-mount (鄭貞茂) said.
While the government aims to provide an environment that fosters innovation, regulators must also consider issues such as crime and money laundering prevention and revenue collection, he said.
“The commission requires the same level of transparency and control for cryptocurrencies as the rest of the financial sector,” Cheng said.
He expressed optimism that cryptocurrencies and the blockchain technology that powers them could gain scale and complement the existing financial system and bring cost reductions and improve inclusivity.
However, it remains unclear which government departments would oversee the regulation of cryptocurrencies, Cheng said, adding that officials in Taipei are still monitoring developments abroad.
He suggested that the Ministry of Economic Affairs take on the task, as cryptocurrencies are virtual commodities, but are not classified as currencies or financial instruments, which would fall under the jurisdiction of the central bank or the commission.
Academy researchers said that cryptocurrency markets remain highly susceptible to market manipulation, as traders with large holdings can easily sway investor sentiment by spreading unfavorable news and rumors.
The lack of fundamental metrics also means that trading decisions in cryptocurrencies are mainly driven by technical indicators, the academy said.
In this regard, regulators could work toward identifying bad actors, require exchanges to be more transparent about pricing and implement a Tobin tax to contain speculation, it added.
The rise of cryptocurrencies could usher in new markets and industries, expanding the options of the nation’s efforts toward industrial upgrade and transformation, National Development Council Deputy Minister Chiou Jiunn-rong (邱俊榮) said.
Alex Liu (劉世偉), chief operating officer of MaiCoin, an online cryptocurrency platform, urged the government to define its regulatory system, saying that the nation could become a hub to capitalize opportunities forgone by other nations that have shunned the asset class.
Many companies, including MaiCoin, are willing to meet compliance when it is defined, he said.
Under the current rules, MaiCoin is flagged as high-risk by banks, Liu said, adding that stringent capital requirements imposed on the company have resulted in less-than-ideal spreads in its business of purchasing cryptocurrencies on behalf of clients using fiat money.
STEPPING UP: The firm has also asked employees to work in split shifts from this week and to halt all but essential overseas business travel from next month Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has implemented a remote work policy for employees not on production lines in an attempt to curb the spread of COVID-19, the world’s largest contract chipmaker said yesterday. This is the first time in the Hsinchu-based company’s history that it has launched a large-scale remote work policy, joining global technology companies, such as Apple Inc and Google, that encourage employees to work from home. The chipmaker has also asked employees to work in split shifts from this week, it said. As the number of virus infections continues to climb worldwide, TSMC has urged employees to halt unnecessary
Manufacturers are on a mission to produce desperately needed medical ventilators for the COVID-19 pandemic, even if it means converting assembly lines now making auto parts. Along with a shortage of masks and gloves, the spread of COVID-19 to almost every corner of the globe has highlighted a great need for specialized machines that help keep severely afflicted patients alive. “As the global pandemic evolves, there is unprecedented demand for medical equipment, including ventilators,” GE Healthcare chief executive officer Kieran Murphy said. The group has hired more workers and is making ventilators around the clock. Swedish group Getinge AB is also ramping up output
Facing the rapidly evolving global COVID-19 pandemic, Citibank Taiwan Ltd (台灣花旗) has proactively taken precautionary measures. “The health and safety of our colleagues and their families, as well as our clients and the communities we serve, are of the utmost importance. We continue to take proactive measures to preserve their well-being while we maintain our ability to serve our clients,” Citibank Taiwan chairman Paulus Mok (莫兆鴻) said in a statement yesterday. “We have local and regional contingency plans in place, and we have well-established business continuity plans for the firm. We are monitoring the situation closely, adjusting our operations accordingly,
GoShare, an electric scooter sharing service provider with Gogoro Inc (睿能創意), plans to expand to Tainan next quarter in a strategic alliance with Aeon Motor Co (宏佳騰). The company currently offers its services in Taipei and Taoyuan. “Tainan is very popular among tourists. The city receives an average of 22.94 million tourists every year,” GoShare head Henry Chiang (姜家煒) told a news conference yesterday in Taipei, citing Tourism Bureau statistics. “Besides, the city has a long history of riding scooters,” he said. Each household owns an average of 2.5 scooters, he added. “Expanding presence” is one of four strategies GoShare is adopting for this