Lawmakers yesterday passed the Act on Financial Technology Innovations and Experiments (金融科技創新實驗條例) in a bid to upgrade the nation’s financial sector by granting technology firms more leeway when experimenting with innovative financial services.
The act was inspired by a sandbox proposed by the UK Financial Conduct Authority for field-testing financial services by tech firms.
Firms that have passed an assessment to use the sandbox would be allowed to bypass — in part or in full — certain regulations after gaining the approval of the Financial Supervisory Commission (FSC), the act stipulates.
Photo: Chen Chih-chu, Taipei Times
The FSC is to consult responsible agencies when it wants a test financial service to be exempted from certain rules, with the exception of the Money Laundering Control Act (洗錢防制法) and the Act Against the Threats of Hacking (資恐防治法), which cannot be exempted, it says.
In addition, a review committee is to be established under the FSC to review plans.
To promote innovation, the committee is required to hire experts from the private sector for between one-third and half of its staff, with the rest composed of representatives from government agencies, the act states.
To avoid profitability being harmed by red tape, the committee is to decide within 60 days of a submission whether it qualifies for the sandbox. Approved plans would then be given an 18-month time frame within which firms would be allowed to launch trial runs of their services.
The 18-month period may be extended to no more than 36 months at the discretion of the FSC.
The review committee is to submit a report to the Legislative Yuan detailing the results of a project and which regulations should be changed within 90 days of the end of a trial, so that a new service may be put on the financial market after necessary legal amendments are approved.
People who experience financial losses as a result of their participation in a financial service test are protected by the Financial Consumer Protection Act (金融消費者保護法) and should file complaints with the Financial Ombudsman Institution.
Democratic Progressive Party Legislator Karen Yu (余宛如), who initiated the bill, said that the passage of the act makes Taiwan the first nation in the world to introduce a financial regulatory sandbox law.
The act would greatly increase the flexibility of financial-oriented regulations that have been limiting innovation, Yu said, adding that it would also break down barriers between sectors, so that tech and financial firms can work together seamlessly.
The sandbox model can also be applied to a variety of fields, such as the research and development of drones, she added.
Chinese Nationalist Party (KMT) Legislator Jason Hsu (許毓仁) said the three-year trial period offered by the sandbox is the longest in the world and lauded the act as “ushering in a new era for Taiwan’s financial technology.”
He said the legislation came later than some would have hoped, as the nation’s achievements in innovative financial services have trailed behind several others in the region such as Hong Kong and South Korea, but the passage of the act was “better late than never.”
Taipei has once again made it to the top 100 in Oxford Economics’ Global Cities Index 2025 report, moving up five places from last year to 60. The annual index, which was published last month, evaluated 1,000 of the most populated metropolises based on five indices — economics, human capital, quality of life, environment and governance. New York maintained its top spot this year, placing first in the economics index thanks to the strength of its vibrant financial industry and economic stability. Taipei ranked 263rd in economics, 44th in human capital, 15th in quality of life, 284th for environment and 75th in governance,
The Sports Administration yesterday demanded an apology from the national table tennis association for barring 17-year-old Yeh Yi-tian (葉伊恬) from competing in the upcoming World Table Tennis (WTT) United States Smash tournament in Las Vegas this July. The sports agency said in a statement that the Chinese Taipei Table Tennis Association (CTTTA) must explain to the public why it withdrew Yeh from the WTT tournament in Las Vegas. The sports agency said it contacted the association to express its disapproval of the decision-making process after receiving a complaint from Yeh’s coach, Chuang
Control Yuan Secretary-General Lee Chun-yi (李俊俋) tendered his resignation last night, admitting that he had misused a government vehicle, as reported by media. His resignation was immediately accepted by the Control Yuan. In a statement explaining why he had resigned, Lee apologized for using a Control Yuan vehicle to transport his dog to a pet grooming salon on May 20. The issue first came to light late last month, when TVBS News reported that Lee had instructed his driver to take the dog to the salon. The news channel broadcast photos that it said were taken by an unnamed whistle-blower, which purportedly showed the
A former officer in China’s People’s Liberation Army (PLA) who witnessed the aftermath of the 1989 Tiananmen Square massacre has warned that Taiwan could face a similar fate if China attempts to unify the country by force. Li Xiaoming (李曉明), who was deployed to Beijing as a junior officer during the crackdown, said Taiwanese people should study the massacre carefully, because it offers a glimpse of what Beijing is willing to do to suppress dissent. “What happened in Tiananmen Square could happen in Taiwan too,” Li told CNA in a May 22 interview, ahead of the massacre’s 36th anniversary. “If Taiwanese students or