Comparison of Huang Shanshan's version of the Crypto Assets Special Law and the current draft: Key highlights include responsible agencies, KOL regulation, and sandbox integration.

As Taiwan's virtual asset market continues to thrive, the pace of legislation has also accelerated. The office of People’s Party legislator Huang Shan-shan (abbreviated as Shan Office) recently proposed a version of the "Virtual Asset Service Act" draft, which features more industry support, innovation encouragement, and balanced risk management compared to the version from the administrative department. In particular, the handling of KOL management, the establishment of dedicated units in regulatory authorities, and provisions for sandbox experiments demonstrate a legislative perspective that is more aligned with practical applications and international trends.

Dedicated units incorporated into law: Emphasis on both regulation and development

The Huang Shan-shan version of the draft clearly defines the supervisory authority as the Financial Supervisory Commission (FSC) and further requires the establishment of dedicated units and personnel to strengthen the regulatory and policy implementation capabilities. In addition, it also empowers the supervisory authority with the responsibility to encourage industry development, allowing it to provide subsidies and recognition to academic institutions, industry players, or individuals.

This action differs from the official version, which focuses solely on regulatory aspects, reflecting the position of the Sand Bureau: "The law should not only prevent fraud but also provide benefits."

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KOL Regulation: Eradicate Fraudulent Advertising in the Cryptocurrency Space

In response to the risks of misleading marketing by KOLs (Key Opinion Leaders) in the cryptocurrency space, the draft regulation for the first time explicitly defines "Key Opinion Leaders (KOLs)" as subjects of regulation, covering those who profit from their influence and are involved in virtual asset marketing on platforms such as YouTube, Facebook, Instagram, and X (formerly Twitter).

This provision indicates that in the future, if KOLs engage in token promotions or trading platform advertisements, they may be required to disclose their partnerships, prohibited from exaggerating profits, and even held jointly liable, officially ushering virtual asset marketing into a new era of compliance.

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Innovation experimental sandbox connection: Completing the experiment allows for direct business operations.

In response to the gap between the Innovation Sandbox Regulations (commonly known as the sandbox) and formal regulations, the draft proposed by Shan has also made enhancements. The draft specifies that if operators complete the innovation experiment approved by the competent authority, they can start operations and apply for a permit within 6 months, with a maximum of 15 months to obtain a license; those who fail to apply within the deadline will be ordered to exit.

In addition, it is also required that the competent authority submit an annual review report to the Legislative Yuan, reflecting the execution of the sandbox and whether legislative adjustments are needed.

More detailed service types: covering financial derivatives.

The version has also expanded in the "virtual asset services" category, adding two major types: "derivative financial products based on virtual assets" and "other services approved by the competent authority," attempting to proactively incorporate future trends such as DeFi, derivative financial products, and innovative contract platforms, to avoid regulatory lag behind practices.

In the competition for specialized legal legislation, Huang Shanshan's version has a market-oriented color.

The draft from the administrative department has completed the briefing session, but the Legislative Yuan version has not yet been finalized. In contrast, Huang Shan-shan's version clearly features a market-oriented approach and risk co-governance characteristics: it strives to balance the promotion of innovation and the protection of investors, and also reflects her office's grasp of industry trends and willingness to participate.

The draft version from Huang Shanshan's office is not only a statement of political participation but also attempts to fill the existing gaps in supervision and legislative blind spots. From the regulation of KOLs, innovation alignment, industry subsidies to detailed division of labor, this special law draft will undoubtedly become a voice that cannot be ignored during the deliberation process in the Legislative Yuan.

This article compares the Huang Shanshan version of the cryptocurrency special law with the current draft: highlights include the responsible agency, regulation of KOLs, and sandbox integration. It first appeared in Chain News ABMedia.