TAIWAN Law and Practice Contributed by: Robin Chang, Sarah Wu and Eddie Hsiung, Lee & Li
4.4 Syndication of Fiat Currency Loans As far as we know, there have been no instanc - es of syndicated loans being arranged entirely online in Taiwan. However, please note that according to the news in January 2024, the FSC has approved a digital-only bank’s trial applica - tion to participate in a syndicated loan. 5. Payment Processors 5.1 Payment Processors’ Use of Payment Rails Please see 2.2 Regulatory Regime regarding e-payment businesses. 5.2 Regulation of Cross-Border Payments and Remittances Traditionally, only licensed banks may han - dle cross-border remittances, and payments through cheques and credit cards are also han - dled by banks. However, the E-Payment Act now allows Taiwan e-payment operators to offer cross-border pay - ment services in collaboration with non-Taiwan e-payment providers. Also, as mentioned in 2.2 Regulatory Regime regarding e-payment businesses, the revised E-Payment Act allows licensed non-e-payment institutions to apply to render cross-border small-amount remittance services exclusively for foreign workers in Tai - wan. 6. Marketplaces, Exchanges and Trading Platforms 6.1 Permissible Trading Platforms In Taiwan, the main stock exchanges are the Tai - wan Stock Exchange and the Taipei Exchange. The Taiwan Futures Exchange is specifically for
trading exchange-traded futures and options. These exchanges are established and regulated under Taiwan’s securities and futures regula - tions, and they typically offer online trading ser - vices. Regarding cryptocurrency trading, security tokens can only be traded by licensed securi - ties dealers in accordance with the STO regula - tions. However, for cryptocurrencies that do not possess the characteristics of securities, crypto exchanges or trading platforms must comply with the Crypto AML Regulations, as mentioned in 2.14 Impact of AML and Sanctions Rules . 6.2 Regulation of Different Asset Classes Please see 6.1 Permissible Trading Platforms . 6.3 Impact of the Emergence of Cryptocurrency Exchanges As specified in 2.2 Regulatory Regime , 2.14 Impact of AML and Sanctions Rules and 6.1 Permissible Trading Platforms , assuming no STOs are involved, crypto exchanges are sub - ject to the Crypto AML Registration Regulations and the Crypto AML Regulations, while STOs should follow STO regulations (please see 10.4 Regulation of “Issuers” of Blockchain Assets ). It is crucial to be aware that, in response to FTX’s insolvency as well as certain reported defrauding activities in Taiwan, the FSC introduced a set of guidelines for VASPs under the Taiwan AML Act in September 2023( “VASP Guidelines” ). These guidelines encompass various aspects, includ - ing (i) the responsibilities that an issuer must fulfil when issuing virtual assets, such as announcing the “whitepaper” on their website; (ii) the mecha - nism by which a VASP reviews the launch of vir - tual assets; (iii) the safekeeping and separation of assets belonging to the VASP and its cus - tomers; (iv) ensuring that transactions are con -
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