Skip to content

SKILL.md

Latest commit

 

History

History
130 lines (101 loc) · 6.33 KB

SKILL.md

File metadata and controls

130 lines (101 loc) · 6.33 KB
Raw
name tw-fintech-compliance
description Navigate Taiwan fintech regulations including FSC oversight, electronic payment laws, VASP rules, AML/KYC requirements, and the regulatory sandbox. Use this skill when the user is building a fintech product in Taiwan, needs to understand licensing requirements, assess crypto/VASP compliance, or apply for the regulatory sandbox — even if they say 'do we need a license', 'crypto regulation in Taiwan', 'KYC requirements', or 'fintech sandbox application'.
metadata
category tags
WP-12 產業知識
industry
taiwan
fintech
compliance
regulation

Taiwan Fintech Compliance

Framework

IRON LAW: In Fintech, Regulation Comes BEFORE Product

Unlike most tech products where you can launch and iterate, financial
services in Taiwan require LICENSING FIRST. Operating without the proper
license is a criminal offense (not just a fine). Determine your regulatory
category and licensing requirements BEFORE writing code.

FSC Regulatory Framework

金融監督管理委員會 (FSC) oversees all financial services in Taiwan:

Category Governing Law License Required FSC Division
Electronic payment 電子支付機構管理條例 電子支付機構許可 Banking Bureau
Third-party payment 第三方支付服務業管理辦法 Registration (lighter) Banking Bureau
P2P lending 金融科技發展與創新實驗條例 (sandbox) or crowd-funding rules Case-by-case Securities Bureau
Robo-advisory 證券投資信託及顧問法 Investment advisory license Securities Bureau
Insurance tech 保險法 Insurance broker/agent license Insurance Bureau
VASP (crypto) 虛擬資產服務提供者管理辦法 (2024) VASP registration + AML compliance Securities Bureau
Open banking 金融機構間資料共享指引 API partnership with banks Banking Bureau

Electronic Payment vs Third-Party Payment

Feature Electronic Payment (電子支付) Third-Party Payment (第三方支付)
Stored value Yes (e-wallet) No (pass-through only)
P2P transfer Yes No
Capital requirement NT$500M+ NT$5M
License FSC approval (12-18 months) Registration (1-3 months)
Examples LINE Pay Money, JKoPay, icash Pay 綠界 ECPay, 藍新 NewebPay

VASP (Crypto) Regulations (2024+)

Requirement Detail
Registration Must register with FSC as VASP
AML/CFT Full compliance with 洗錢防制法
KYC Identity verification for all users
Custody Customer asset segregation required
Marketing Restrictions on advertising (no promises of returns)
Reporting Suspicious transaction reports (STR) to 調查局

AML/KYC Requirements (All Financial Services)

KYC Level When Required Data Collected
Simplified Low-risk, small transactions Name, ID number, DOB
Standard Account opening, most transactions + Address, occupation, source of funds
Enhanced High-risk customers, PEPs, large transactions + Detailed source of wealth, ongoing monitoring

Ongoing obligations:

  • Transaction monitoring (unusual patterns)
  • Suspicious Transaction Reports (STR) to 法務部調查局
  • Sanctions screening (OFAC, UN, EU lists)
  • Record keeping: 5+ years after account closure

Regulatory Sandbox (金融科技創新實驗)

Aspect Detail
Purpose Test innovative financial services without full licensing
Duration Up to 18 months (extendable to 36)
Application Submit to FSC with: innovation description, consumer protection plan, risk assessment
Approval time 60 business days
Scope limitation Must define user count, transaction limits, geographic scope
Exit plan Path to full license or orderly shutdown

Open Banking (Three Phases)

Phase Data Shared Status
Phase 1 Product information (rates, fees) Launched 2019
Phase 2 Customer information (with consent) Launched 2021
Phase 3 Transaction initiation (payment, transfer) In development

Output Format

# Fintech Compliance Assessment: {Product}

## Product Classification
- Service type: {payment / lending / advisory / crypto / insurance}
- Regulatory category: {electronic payment / third-party / VASP / etc.}
- License required: {specific license name}

## Licensing Pathway
| Step | Action | Timeline | Cost |
|------|--------|----------|------|
| 1 | {step} | {months} | NT${X} |

## AML/KYC Requirements
- KYC level: {simplified / standard / enhanced}
- Transaction monitoring: {required / not required}
- STR reporting: {required / not required}

## Key Risks
| Risk | Impact | Mitigation |
|------|--------|-----------|
| {regulatory risk} | H/M/L | {action} |

## Recommendation
- Proceed with licensing / Use sandbox / Restructure product to avoid licensing

Gotchas

  • Third-party vs electronic payment: The distinction is stored value. If your app holds customer money (e-wallet), you need the much heavier electronic payment license (NT$500M capital). If you just process payments (pass money from buyer to seller), third-party registration is sufficient.
  • Sandbox is not a shortcut: The sandbox exempts you from licensing temporarily, but you must still comply with AML, consumer protection, and data privacy. And you still need to get a full license to commercialize.
  • VASP regulation is new and evolving: The 2024 VASP rules are Taiwan's first comprehensive crypto regulation. Expect amendments and additional guidance. Build compliance infrastructure that's adaptable.
  • Foreign fintech entering Taiwan: Foreign companies must establish a Taiwan entity and obtain Taiwan-specific licenses. A license in another jurisdiction does not transfer.
  • This is educational guidance, not legal/regulatory advice: Fintech regulation is complex and penalties for non-compliance include criminal charges. Engage a regulatory affairs lawyer specializing in Taiwan financial services.

References

  • For FSC licensing application guides, see references/fsc-licensing.md
  • For AML/KYC implementation checklist, see references/aml-kyc-checklist.md