Author: Xu Peiling, Director, Institute of Science and Technology Finance, CITIC School of Financial Management
Preface
In recent years, as the virtual asset industry has gradually matured and become more popular, industry supervision has become an issue that governments around the world have to actively face. In addition to establishing that the Financial Supervisory Commission will be the supervisory authority this year, Taiwan has also amended the law to add virtual currency industry categories, and has The Virtual Asset Platform and Trading Business (VASP) Guidelines were recently officially promulgated. This series of measures are indispensable for the future development of the virtual asset industry in Taiwan.
Taiwan's outstanding talent pool in the technology field is what major technology companies around the world compete for. Especially in the field of program development or design, there is also a very mature Web3 developer community. Compared with other Asian countries or cities, Taiwan Regardless of the development of the virtual asset industry, it actually has unique advantages and conditions.
At the beginning of last month, legislator Guo Guowen invited representatives from industry, government and academia to hold a public hearing on the supervision of virtual assets, and advocated that a "Virtual Assets Bureau" should be established under the Financial Supervisory Commission to be responsible for the supervision of the industry. It is worth mentioning that this public hearing, which mainly discussed Taiwan’s supervision, was also rare to see representatives of international industry representatives such as Binance, the world’s largest trading platform, and Bitfinex, the world’s largest stable currency Tether-related exchange. With his practical operating experience in the global market, An also provided money laundering prevention and control experience and regulatory examples from other countries at the meeting for reference by relevant units. This public hearing once again confirmed that Taiwan does have its advantages in industrial development and can attract in-depth participation from international industry players.
The author is fortunate to be invited to serve as a representative of the academic community to make comments at the public hearing and communicate with representatives from all walks of life. The author truly believes that through the public hearing, an industry-government-academic exchange platform, it will be able to promote mutual understanding and understanding among all parties in the industry. Understand that it will lay a good foundation for the development of Taiwan's blockchain. In particular, blockchain technology breaks through traditional cross-border and intermediary restrictions. If Taiwan and international players can cooperate more closely, it will benefit the development of Taiwan's Web3 and virtual asset industries. Whether it is in terms of consumer protection or industrial development, it is expected to bring positive benefits.
The significance of the launch of international exchanges from the perspective of Taiwanese users
Avoid JPEX-like events from happening
The recent JPEX incident has caused an uproar in Hong Kong, with the amount involved reportedly reaching nearly HK$1.5 billion. Although the platform has actively promoted it in Taiwan, it has not been confirmed how wide the impact is. However, this incident highlights the importance of supervision. For consumers, supervision provides users with more protection; on the other hand, if the government and industry can work together to build a good industrial development environment and accept businesses with good health, Platform can also effectively reduce the risk of users using unknown platforms, and at the same time, it can also prevent the industry from going underground.
Consumers gain more choices and protection
From the perspective of products and services, opening up and having a variety of choices means that consumers have more choices. Consumers can choose the most suitable products or services according to their own needs. On the other hand, in order to attract consumers, companies They will also continue to improve their own services, from the product side to information security, consumer protection and other levels, and even enhance brand trust, thus forming a positive industry competition, and the ultimate beneficiaries will also include Taiwanese consumers.
For example, if international high-quality players can enter the Taiwan market, they will not only bring advanced technology and experience, but also provide services exclusive to the local market. For example, Binance Japan’s listing of local currencies is ahead of other platforms, allowing users to There are more choices, and at the same time, the local platform is regulated by the government. Under healthy competition and legal supervision, the rights and interests of Japanese consumers can be protected.
Government policies should encourage industrial innovation and development, and at the same time provide complete consumer protection through supervision. Therefore, the development of the virtual asset industry should prioritize consumer protection, and the two complement each other. There is considerable successful experience in other foreign markets, and industry and government departments work together to create a win-win situation for industrial development and consumer protection.
The impact of international players on Taiwan’s virtual asset industry
business investment
There is no doubt that Taiwan has high-quality technical talents, which is also one of the main incentives for foreign investors to set up business here. The presence of foreign companies in Taiwan can increase local employment opportunities and attract more foreign investment. Neighboring countries such as Singapore and Hong Kong are striving to become Web3 centers in Asia and even the world. By providing clear policies, clearly implementing the supervision of virtual assets, and building a business-friendly business environment, they can attract Web3 companies to settle in.
Taiwan itself already has mature community and talent conditions. If it can provide appropriate policy support at the government level and actively improve the laws related to virtual assets, I believe that more high-quality international companies will be willing to set foot in Taiwan. Taiwan still has a good future. opportunities to occupy a place in this wave of Web3.
Take TSMC as an example. It is not only a leader in global semiconductor manufacturing, but also an important cornerstone of Taiwan's technology industry and is known as the "Sacred Mountain that Protects the Nation." TSMC's success has established Taiwan's leading position in the global high-tech industry and highlighted the competitiveness of Taiwan's technical talents in the global market. Such technical strength and expertise have attracted many wafer industry supply chains to invest and set up R&D centers in Taiwan.
Amid the rapid rise of the emerging Web3 industry, Taiwan should seize this new opportunity and let the world see Taiwan through the technical features and industries of Web3. In the past, Taiwan may have missed a development opportunity in the era of the Internet platform economy. The cross-border disintermediation feature of Web3 allows Taiwan to leverage its existing advantages and combine the power of new startups and virtual asset-related businesses to create a "national protector" for Taiwan in the next generation.
More cooperation and internationalization
In line with international trends, however, we must also recognize the fact that in the emerging field of virtual assets, countries around the world are still constantly exploring and learning. It is indeed difficult for the government alone to cope with the rapidly changing industrial needs. Therefore, by cooperating with international virtual assets and Web3, Taiwan can more quickly understand the latest international technology development and management experience, and through the power of policy promotion and supervision, bring the latest applications to the Taiwan market and jointly develop Web3 with domestic and foreign industry players. To ensure that Taiwan always maintains its status as an international gifted student in the development of Web3.
Strengthen security and fight crime. Due to their global business experience and the supervision and policies of various countries, international players have in-depth understanding and experience of virtual asset crime methods and prevention, and at the same time, they have deeper resources to invest in Crime prevention. Especially in the investigation of blockchain and virtual asset crimes, which is different from the pursuit of traditional financial crimes in the past, judicial units need to cooperate with experts and domestic and foreign industry players to provide more advanced technologies and methods to help Taiwan’s prosecutors and police investigate. The department solved relevant cases more quickly and effectively. In addition, the global resource network can also help Taiwan establish closer cooperation with law enforcement agencies in other countries to jointly combat transnational crimes.
in conclusion
Taiwan has obvious advantages in the development of Web3 and virtual asset industries. On the one hand, Taiwan's technological talent pool and successful corporate cases give it a certain competitive advantage in technology research and development and business development, especially in terms of developer talent. There are actually many internationally outstanding Web3 project teams. In fact, It comes from Taiwan, but the outside world doesn’t know it.
Furthermore, Taiwan's unique advantages, including its geographical location and cultural background, make it a potential Web3 hub alongside places like Singapore and Hong Kong. Regarding the prospects of the virtual asset industry, Taiwan needs to realize the importance of openness, cooperation, internationalization and improving legislation. Through in-depth cooperation with international companies, it can not only bring new business opportunities and technological exchanges to Taiwanese companies, but also enhance the international image and competitiveness of Taiwan's overall industry.
It is hoped that Taiwan can truly achieve "openness and cooperation" in the supervision of virtual assets. This is not only a support for Taiwan's local industry, but also a commitment to the global virtual asset industry, and is expected to promote Taiwan's integration with international standards. When we use advanced technology and talent advantages, supplemented by improved legislation, to open the door for international players to participate in development, we can expand cooperation with the world's leading companies and experts. Taiwan is expected to become the Asian leader in the virtual asset industry. It will exert greater international influence in an emerging industry and bring more positive impacts and new opportunities to the development of the entire virtual asset industry.
This article Taiwan’s virtual asset market prospects and the deep participation of international players first appeared on Zombit.