Jian Rongzong, the convener of the Kuomintang think tank Industry and Innovation Research Center, questioned that the Financial Supervisory Commission said that FTX has no subsidiaries in Taiwan, and the regulatory measures have not reached overseas exchanges. It has repeatedly reminded that cryptocurrencies are risky. cannot be protected.

(Provided by the Kuomintang think tank)

[Reporter Shi Xiaoguang/Taipei Report] FTX, the world's top three cryptocurrency exchanges, recently went bankrupt. The Kuomintang think tank held a symposium on "The FTX incident should not be ignored" for this purpose today, questioning that 150,000 people in Taiwan were victims, and the loss amount was about 100. It is feared that it will be a chained and closed-loop "Lehman incident." Although the Financial Supervisory Commission stated that FTX has no subsidiaries in Taiwan, and the regulatory measures have not extended to overseas exchanges, the competent authorities are helpless.

The Kuomintang think tank advocates that the government should manage cryptocurrency exchanges, separate consumer assets from exchange assets, adopt a trust mechanism, store cryptocurrencies in "cold wallets", and exchanges should provide reserve certificates and third-party audits mechanism.

Please read on...

Jian Rongzong, convener of the Kuomintang think tank Industry and Innovation Research Center, pointed out that FTX is estimated to have 32 billion US dollars, which is larger than many banks in Taiwan. Originally, everyone thought that such a large company would not fail, but the founder misappropriated funds. The Trade Fair (SEC) and the US Commodity Futures Trading Commission (CFTC) have taken relevant actions. Although the Financial Supervisory Commission stated that FTX has no subsidiaries in Taiwan, regulatory measures have not extended to foreign exchanges, and it has repeatedly reminded that cryptocurrencies are risky. This means That is, 150,000 victimized consumers cannot be protected.

Jian Rongzong said that in 2014, a cryptocurrency exchange was hacked in Japan. In 2017, all exchanges were required to have a license from the Financial Services Agency. Therefore, after this incident, FTX Japan was immediately frozen. , so that consumers can get money, the United States will also start to supervise and issue licenses for cryptocurrency exchanges. In contrast, Taiwan currently only has money laundering prevention regulations for cryptocurrencies, and there is no competent authority, which cannot protect consumers’ assets.

Wu Yiting, a legislator of the Kuomintang, pointed out that because Japan has an investor protection fund settlement law, it can recover customers' money from FTX Japan in January next year. In contrast, Taiwan only has a money laundering prevention law. Unless money laundering is involved, the FSC will ignore it, which is very funny. , but she also said that it is best not to allow the FSC to manage too much, to manage things that have not been regulated in the past, as long as the customers and the company's money are separated, the FSC will definitely be able to manage it well.

Wu Yiting suggested that the Financial Supervisory Commission should at least take care of what it understands, which can protect consumers first. At the same time, it should do a good job in education and counseling, and encourage the industry to self-discipline. Only by educating the industry and the general public, investment inherently has risks and losses, otherwise once the public steps on the mines, they will blame the government.