Features of Financial Sector Regulation in Taiwan

In this article, we will consider some aspects of the regulation of Taiwan's financial sector, which is booming.

The island's economy has a favorable investment climate, inferior in this indicator to only a few countries. Taiwan is based on small and medium enterprises that actively use the services of the financial and banking sector. Many of the world's leading banks have their rep offices in Taiwan. The largest Taiwanese financial holdings are actively acquiring companies abroad. All this indicates the right direction of Taiwan's movement within the framework of the legal regulation of the financial and banking sector.

Taiwan's financial legislation is well developed and consists of a number of legislative acts. It includes both the laws themselves and sub-laws, the number of which is many times greater than the first. Here in Taiwan, they are simply not in a hurry with the adoption of difficult-to-change codified acts of law-making, preferring to them scattered by-laws of a local nature. It is at the level of by-law rulemaking that it is easiest to quickly and painlessly regulate the financial and banking sector, which is important for the growth of the region.

Payment Services in Taiwan

Bank transfers can be made only through a licensed bank, as well as payments by check and credit cards. 

If a company wants to provide electronic payment services in Taiwan, it must get authorized with the FSC. The law provides for exceptions depending on the total balance of the agent. To learn more about registering an electronic payment business in Taiwan, do not hesitate to contact IQ Decision UK specialists.

Fintech Companies in Taiwan

Foreign companies cannot provide financial services without an FSC license. A foreign firm can obtain a license for a fintech company in Taiwan only after the opening of a subsidiary or branch locally. If a fintech company sells insurance products in Taiwan, then this will be considered an insurance business, which requires an insurance license from FSC. If you intend to register a fintech company in Taiwan, we recommend that you order legal advice on registering a business in Taiwan from our legal professionals.

Financial Services Marketing

The Financial Services Consumer Protection Act provides general marketing rules for financial services in Taiwan. As in other civilized markets, when conducting advertising or marketing events, financial companies should not falsify, obscure or mislead consumers. If you wish to start a business (financial services) in Taiwan, please contact us for legal details.

Clients’ Privacy Protection

There are no rules requiring mandatory disclosure of information, but instead, the Association of Bankers supervises the Open Banking activities. If you plan to register a fintech company in Taiwan, open a corporate bank account in Taiwan, we can help.

Artificial Intelligence for Advice

The use of AI in the financial business in Taiwan is still under development. Key applications include chatting with clients (Chatbot and Robo-Advisor Services). Starting an investment business in Taiwan using AI is a common practice. If your business is built on advising on investment in securities, you can provide this kind of service online using automated tools according to the algorithm.

No Rules for Blockchain 

There is no specific regulation on the use of blockchain technology in Taiwan.

AML

An important role in regulating the financial sector of Taiwan is played by law enforcement efforts to combat money laundering. The Law on Combating Money Laundering is in force, with subsequent amendments and additions. Despite the fact that it consists of only 17 articles, its significance for the entire legal system of Taiwan can hardly be overestimated. 

The norms contained in it are aimed at preventing and combating crimes in the field of money laundering. Taiwan has a Financial Supervisory Commission, which also monitors illegal cash transactions both within the Republic and abroad.