New Developments in Taiwan's Financial Industry! FSC's 5 Actions to Facilitate Industry Transformation, Establishing a New "Innovation Division" Next Year

To promote financial technology and sustainable development, the Financial Supervisory Commission will establish a new department next year.

In order to implement the development of financial technology, sustainable financial model, and the policy of the Asian asset management center, the Financial Supervisory Commission will officially establish the 'Financial Market Development and Innovation Division' at the beginning of next year, aiming to strengthen the promotion and innovation of financial technology.

According to the report of the Liberty Times, the Financial Supervisory Commission (FSC) obtained the approval of the Executive Yuan to increase its staff in August this year, and submitted the departmental regulations and organization chart of the Financial Market Development and Innovation Department to the Executive Yuan for approval. Currently, the FSC is planning for personnel recruitment, regulatory revisions, budget allocation, office space allocation, and information equipment, and it is expected that the department will be officially established in early 2025.

Source: Budget Center of the Legislative Yuan. The Financial Supervisory Commission is submitting the department's regulations and organizational charts to the Executive Yuan for approval. It is expected that the department will officially establish in early 2025.

In addition, according to the report of the Budget Center of the Legislative Yuan, the Financial Supervisory Commission has allocated approximately 21.012 million yuan and 17.887 million yuan for its unit budget and the Financial Supervision Management Fund in 2025, totaling about 38.899 million yuan. These budgets are mainly used for personnel-related expenses, interior decoration, and the procurement of office supplies and equipment. Compared with the current "Financial Technology Development and Innovation Center," the newly established "Financial Market Development and Innovation Department" will have dedicated staff, additional manpower, and a larger scale. This demonstrates the determination of the Financial Supervisory Commission in promoting financial technology and innovation.

FSC strengthens digital transformation and sustainable finance, with five major actions to assist

Peng Jinlong, Chairman of the Financial Supervisory Commission (FSC), pointed out at the Asian Bankers Association (ABA) General Meeting and Seminar on November 18th that the financial industry plays an important and crucial role in technological innovation and sustainable development. The FSC will fully support the financial industry in enhancing its digital and technological capabilities, and building its own competitiveness. In order to support the development of financial technology in Taiwan's financial market, the FSC has planned and promoted five important actions:

Significantly expand the pilot scope of banking, insurance, and securities business, promote 'lightweight sandbox', encourage full cooperation between the financial industry and the technology industry, and provide greater experimental space and flexibility for financial innovation applications.

Plans to study the "Financial Supervision Sandbox Regulations" to promote more experiments and development of innovative Financial Services.

Plan to establish the "Financial Technology Industry Alliance", research the possibility of jointly raising funds for financial technology venture capital funds, and enhance the collective innovation energy and benefits of the industry.

Through amending laws, encourage financial industry groups to engage in innovative collaborations, including promoting banks to operate virtual asset custody businesses, conducting experiments on tokenization of real-world assets (RWA), and formulating specialized laws for Virtual Asset Service Providers (VASP).

Continue to develop opportunities for financial technology, adjust application conditions for digital insurance companies, and promote more financial technology applications.

Strengthening regulatory and international cooperation, embracing a new era of finance.

In addition, the Financial Supervisory Commission (FSC) has conducted special financial inspections on multiple major VASP operators in response to the recent attention to the virtual asset service providers (VASPs), focusing on reviewing measures to prevent Money Laundering and combat terrorist financing, and imposing penalties on those with deficiencies.

In terms of sustainable finance, the FSC issued the 'Green and Transformational Finance Action Plan' last month, which is committed to guiding financial funds to support corporate transformation and assisting society in achieving low-carbon goals. Peng Jinlong stated that a complete data platform will be established to enhance the transparency and integrity of corporate carbon emission data, encourage the financial industry to disclose decarbonization goals and strategies, and actively participate in decarbonization policies.

He also emphasized that the FSC will vigorously cultivate talents in sustainable finance, promote the training of professionals in sustainable finance qualifications, continuously improve the evaluation mechanism, expand international participation, cooperate with major international organizations, and enhance Taiwan's influence in the sustainable finance industry.

This series of measures by the Financial Supervisory Commission heralds a new era of digitalization and sustainable development in Taiwan's financial industry. With policy support and innovation, the financial market is expected to reach new heights in the future.

"Taiwan's Financial New Progress! FSC's 5 Actions Help Industry Transformation, New 'Innovation Department' to be Established Next Year'. This article was first published in 'encryption city'."