Taiwan’s Financial Supervisory Commission (FSC) Chairman, Huang Tianmu, revealed in December last year that they have received instructions from the Executive Yuan to study the feasibility of establishing a “Financial Technology Bureau” as the 5th bureau. With the formation of the new cabinet by Lai Ching-te, the next steps in this development are being closely watched.
In response to the continuous rise of financial technology fraud cases, the FSC has been considering the establishment of a Financial Technology Bureau to strengthen the regulation of new financial products in Taiwan, such as virtual assets, P2P platforms, and buy-now-pay-later schemes. Chairman Huang Tianmu confirmed during a questioning session at the Legislative Yuan’s Finance Committee that they are currently evaluating the possibility of establishing the new bureau at the request of the Executive Yuan.
As President-elect Lai Ching-te is actively forming a new cabinet, there is great attention on whether Chairman Huang Tianmu will remain in his position at the FSC. Discussions on the establishment of a “Financial Technology Bureau” and the related plans for a “Virtual Currency Law” have resurfaced.
On the other hand, insiders have revealed that the new cabinet may also consider establishing a “Financial Development Bureau” similar to Singapore, South Korea, and Japan. Lin Chia-lung, who is considered a popular candidate for the position of Premier, has previously mentioned the possibility of establishing a Financial Development Bureau or upgrading the Comprehensive Planning Department.
Currently, the FSC consists of four major bureaus, namely the Banking Bureau, Insurance Bureau, Securities and Futures Bureau, and Inspection Bureau, as well as two departments, namely Legal Affairs and Comprehensive Planning. The establishment of a Financial Technology Bureau or a Development Bureau continues to attract attention in response to the rapid growth of new financial products.
Chairman Huang Tianmu stated in an interview at the end of last year that the FSC has applied for an increase in staff and has obtained approval from the Executive Yuan. For example, the Banking Bureau has increased its staff by 4. Currently, the FSC has a total of over 1,000 employees. However, the decision on whether to establish a new bureau and how many staff members to add for the 5th bureau is still under study and it is too early to make any announcements.
In terms of business development plans, Huang Tianmu mentioned that besides increasing staff, the FSC also has other measures. For example, in the field of green finance, they collaborate with public and private sectors, as well as other relevant units, to promote it. In terms of financial technology, they cooperate with the Banking Association and the Financial Technology Innovation Park to work together.
If the FSC decides to establish a new bureau, Huang Tianmu emphasized that the purpose must be to create value. At this stage, the FSC needs to evaluate what the new bureau can do, how it can contribute to the development of the financial market, or how it can address existing problems. A cost-benefit analysis needs to be conducted, and if the decision to establish the bureau is confirmed, the organizational law must be revised and approved by the Executive Yuan and the Legislative Yuan. Due to the significance of the matter, it is currently being discussed internally and there is no specific timeline for a decision.
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