Taiwan’s Financial Supervisory Commission (FSC) Chairman, Huang Tien-mu, revealed in December last year that they had received instructions from the Executive Yuan to study the feasibility of establishing a “Financial Technology Bureau,” also known as the “Fintech Bureau.” With the formation of a new cabinet by Premier Lai Ching-te, the next steps in this progress are under scrutiny.
In response to the continuous cases of financial technology fraud, the FSC has been considering the establishment of a Fintech Bureau since last year in order to strengthen the regulation of emerging financial products in Taiwan, such as virtual assets, P2P platforms, buy-now-pay-later services, and more. Chairman Huang Tien-mu confirmed during a legislative hearing at the Finance Committee that they are currently evaluating the possibility of establishing the new bureau as requested by the Executive Yuan.
As President-elect Lai Ching-te is expediting the formation of the new cabinet, there is much attention on whether Chairman Huang Tien-mu will continue in his position at the FSC. Discussions on the establishment of the Fintech Bureau and the enactment of the “Virtual Currency Act” have resurfaced.
On the other hand, insiders have revealed that the new cabinet may also consider establishing a “Financial Development Bureau,” following the examples of Singapore, Japan, and South Korea. Lin Chia-lung, a popular candidate for the position of Premier, has previously mentioned the establishment of a Financial Development Bureau or upgrading the General Planning Department to this bureau.
Currently, the FSC has four major bureaus: the Banking Bureau, the Insurance Bureau, the Securities and Futures Bureau, and the Inspection Bureau. Additionally, there are two departments: the Legal Affairs Department and the General Planning Department. The establishment of a Fintech Bureau or a Financial Development Bureau to address the rapid growth of new financial products continues to attract attention.
Chairman Huang Tien-mu stated in a media interview at the end of last year that the FSC has applied for additional personnel and received approval from the Executive Yuan. For example, the Banking Bureau has added four positions, and the FSC currently has a total of over 1,000 staff members. However, the decision to establish new bureaus and the number of personnel required for the fifth bureau are still under evaluation and it is premature to comment on these matters at this time.
In response to business promotion plans, Chairman Huang Tien-mu mentioned that apart from increasing personnel, the FSC is also exploring other approaches. For instance, in the area of green finance, they are collaborating with various stakeholders, including the Taiwan Financial Services Roundtable and the Financial Technology Innovation Park.
Chairman Huang Tien-mu emphasized that if the FSC were to establish new bureaus, it must be with the aim of creating value. The FSC needs to first assess what activities can be undertaken by the new bureaus and how they can contribute to the development of the financial market or address existing issues. A cost-benefit analysis should be conducted, and if the decision to establish new bureaus is confirmed, the organizational law would need to be amended and approval from the Executive Yuan and the Legislative Yuan would be required. Given the significance of the matter, internal discussions are ongoing, and there is no specific timeline for a decision at this moment.
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