TAIWAN Law and Practice Contributed by: Robin Chang, Sarah Wu and Eddie Hsiung, Lee & Li
12.2 Areas of Regulatory Focus In the context of fintech, fraud may occur in circumstances such as (1) general fraud involv - ing payment methods or cryptocurrency used during criminal activities (eg, used for payments resulting from fraudulent schemes) and (2) ille - gal fundraising associated with cryptocurrency, where the token issuer provides investors with misleading or false information that misrepre - sents the rights and interests in the tokens being issued. 12.3 Responsibility for Losses The responsibility for the loss depends on the business model and specific circumstances. However, the greater the extent to which the loss can be attributed to the fintech service pro - vider – such as due to gross negligence or even ordinary negligence – the more likely it is that the service provider will be held accountable for the loss.
press releases, multiple TSPs were granted approval to collaborate with certain banks dur - ing this phase. Phase III, which commenced in January 2024, focuses on transaction-related information. Scope included in Phase III encom - pass businesses/services in respect of deposits, credit cards, loans, payments, and remittances via mobile phone numbers. 11.2 Concerns Raised by Open Banking Any open banking project, if it involves transfer of personal data, is subject to Taiwan’s PDPA. Please see 2.11 Implications of Additional, Non-Financial Services Regulations . As regards data security, any project is required to follow the self-regulatory rules set out by the Bankers Association as well as the rules and security standards of the FISC, as specified in 11.1 Regulation of Open Banking .
12. Fraud 12.1 Elements of Fraud
In Taiwan, criminal fraud typically occurs when an actor intentionally carries out fraudulent activ - ities, leading victims to give away their belong - ings/properties.
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