law and legislation
On October 25, 2017, while addressing questions from lawmakers in the legislature, Perng Fai-nan (彭淮南), governor of the Central Bank of the Republic of China (Taiwan), reportedly said that bitcoin trading should be added to the island’s anti-money laundering notification system.
In March 2017, the Executive Yuan (the executive branch of the Taiwanese government) established an Anti-Money Laundering Office. ETHNews has not been able to confirm whether this is the segment of the Taiwanese government that is in charge of the notification system.
According to local sources, Perng worried that bitcoin could be used covertly for illegal transactions, like drug trafficking and tax evasion. Thus, he suggested that Taiwan’s money laundering regulation encompass cryptocurrency. Perng added that the central bank will continue examining digital currency, but he refrained from recognizing bitcoin as a currency.
For 14 straight years, Perng has been recognized by Global Finance magazine as one of the “world’s best central bankers.” He received an “A” for excellent performance in metrics like inflation control, economic growth goals, currency stability, and interest rate management. Local sources lauded Perng for guiding Taiwanese economy through the dotcom bubble of the early 2000s, the property market collapse after the 2003 SARS outbreak, the 2008-2009 global financial crisis, and the 2010 European debt crisis. Cryptocurrency is the latest challenge that he will need to address – and there’s no telling what sort of growth (or crash) to expect.
Earlier this month, ETHNews reported on the leniency toward cryptocurrency expressed by Taiwan’s Financial Supervisory Commission (FSC). Before a joint session of Parliament and the Cabinet, FSC chairman Wellington Koo said that Taiwan would not regulate against blockchain and distributed ledger technology.
Taiwan’s laissez-faire approach contrasts with the restrictive attitude displayed by China. In September 2017, the People’s Bank of China forbade token offerings and soon thereafter, two of the country’s largest cryptocurrency exchanges announced that trading would soon end.
Matthew is a writer with a passion for emerging technology. Prior to joining ETHNews, he interned for the U.S. Securities and Exchange Commission as well as the OECD. He graduated cum laude from Georgetown University where he studied international economics. In his spare time, Matthew loves playing basketball and listening to podcasts. He currently lives in Los Angeles. Matthew is a full-time staff writer for ETHNews.