Thu, May 03, 2018 - Page 12 News List

Experts discuss virtual currency regulation

By Ted Chen  /  Staff reporter

Experts and industry representatives yesterday agreed that real name registration is one of the basic pillars of a sound regulatory system for cryptocurrencies to combat money-laundering involving the emerging asset class.

The government must take heed and monitor ongoing developments in cryptocurrencies, which have expanded into about 1,500 variants with total global market capitalization of US$600 billion, and devise a regulatory system, Chinese Nationalist Party (KMT) Legislator John Wu (吳志揚) said at a public hearing held by the Legislative Yuan’s Judiciary and Organic Laws and Statutes Committee.

National Chengchi University law professor Chang Kuan-chun (張冠群) urged the government to draft an act that defines crytocurrencies and the types of allowable transaction methods, and add operators of cryptocurrency exchanges and service providers to the nation’s anti-money laundering regime.

The Financial Supervisory Commission has classified cryptocurrency as a high-risk commodity and has imposed stringent requirements for lenders acting as collecting banks for cryptocurrency platforms.

It has earlier warned of a lack of transparency in cryptocurrency trading due to a gap between cryptocurrency trading accounts and bank accounts.

Democratic Progressive Party (DPP) Legislator Karen Yu (余宛如) said that while Taiwan still classifies crytocurrencies as a high-risk commodity, the government must also look beyond anti-money laundering enforcement to ensure sustainable development of the emerging industry.

As more governments across the globe soften their stance on banning cryptocurrencies, Taiwan must not be left behind in the dialogue, KMT Legislator Jason Hsu (許毓仁) said.

Hsu has been working to form a self-regulatory organization for currencies with cryptocurrency exchanges, law firms, investors and financial institutions to facilitate communication between regulators and the industry.

Maicoin founder and CEO Alex Liu (劉世偉) said that as his company accepts deposits to purchase cryptocurrencies on behalf of customers, it has been working with KGI Bank (凱基銀行) to manage customers’ money under the lender’s trust accounts.

Maicoin customers are required to register the addresses of their digital wallets in the event the company needs to cooperate with investigators in criminal probes, Liu said.

The Executive Yuan’s Anti-Money Laundering Office said that it would continue to work with the central bank and the Ministry of Economic Affairs to define the scope for anti-money laundering enforcement related to cryptocurrencies.

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