Financial Supervisory Commission's Peng Jinlong: University-level AI models will be used in the financial industry next year, and the RWA plan has been launched.

The Chairman of the Financial Supervisory Commission, Peng Jinlong, stated at the “FinTechOn 2025” forum on September 1 that promoting the development of financial technology is an important policy direction of the Executive Yuan and the Financial Supervisory Commission, with the goal of building a digital financial framework that has international competitiveness. He also reviewed the five major financial technology innovation strategies promoted since taking office and emphasized that Taiwan is actively aligning with international standards to meet the challenges of virtual assets, AI, and emerging financial services.

From the five major strategies to the three key points of legislative amendments, see them all at once.

Peng Jinlong first reviewed the five major financial technology innovation strategies, which are to expand innovation tolerance and support through legal amendments, continue to promote online and digital insurance, strengthen collective innovation through industry alliances, explore emerging businesses such as virtual assets, and continue to support startups and upgrade the park.

Peng Jinlong subsequently pointed out that the Financial Supervisory Commission has integrated the “Business Trial Measures” for banking, insurance, and securities futures into a single regulation, and has relaxed the application scope. Currently, there are more than a hundred demonstration cases. He emphasized that there is currently a legislative amendment to strengthen the Financial Innovation Experimentation Act (Sandbox), with three main focuses:

The demonstration business that used to belong to administrative rules will be incorporated into the legal framework.

Increase the items applicable to the “Innovative Experiment Law”, which will include virtual asset services in the future.

Strengthen the mechanism for implementing innovations, allowing innovative experiments that can change the market to truly emerge in Taiwan.

Increase the deregulation of insurance industry supervision to promote financial technology innovation.

In the advancement of digital finance, Peng Jinlong stated that over the past year, the Financial Supervisory Commission has relaxed the scope of offline business for pure online banks and has also loosened regulations on online transactions for banks and insurance.

He added that on July 30 this year, the “Regulations on the Establishment and Management of Insurance Companies” was amended, adjusting seven regulations at once, relaxing the establishment threshold and operational scale for digital insurance companies, and for the first time introducing the “Innovation Protection Period” to encourage the development of new financial technology business models.

Establish an industry alliance and launch a “university-level” AI model next year.

Peng Jinlong emphasized that the market size in Taiwan is limited. If we only rely on a single financial institution to fight alone, development will be constrained. Therefore, this year, an alliance of over 16 financial holding companies and institutions was established called the “Financial Technology Industry Alliance.” The alliance has set up four major working circles: “Application Research and Development,” “Digital Standards,” “Financial Investment,” and “Cross-industry Ecosystem Co-creation.”

At the same time, we have begun to promote projects such as “anti-fraud technology,” “financial AI large language models,” “financial non-hierarchical AI governance,” “innovation technology fund,” and “digital financial passport.”

Peng Jinlong specifically mentioned the financial AI large language model, revealing that he was impressed during a briefing he attended one or two weeks ago. By next year at the earliest, Taiwan is expected to have AI models available for trial use in the financial industry, with capabilities comparable to a “college graduate level,” able to assist the financial sector in addressing basic AI application needs.

Actively exploring emerging businesses, the RWA experimental program has been launched.

In the exploration of emerging business opportunities, the Financial Supervisory Commission has promoted banks to pilot virtual asset custody services and has initiated a pilot program for the tokenization of real-world assets (RWA). Peng Jinlong stated that the draft of the “Virtual Asset Service Act” was submitted for review by the Executive Yuan in June and is expected to be sent to the Legislative Yuan for deliberation in the future.

Peng Jinlong pointed out that this special law will cover trading platforms, cross-border payments, and stablecoin management. It will not only help strengthen the security of virtual assets but also reduce cross-border remittance time and costs through legal channels, establishing a complete regulatory framework for virtual assets in Taiwan.

Promoting the Fintech Innovation Park 2.0, striving to become the “Asian Nasdaq”.

Peng Jinlong recalled that the Financial Supervisory Commission (FSC) established the “Fintech Innovation Sandbox” back in 2018, providing regulatory cybersecurity checks, supervisory consultations, a digital sandbox, expert advisory services, and other support, with 186 startups having settled in so far. In the future, it will promote the “Fintech Innovation Sandbox 2.0 Plan,” integrating venture capital associations, exchanges, and over-the-counter trading centers to provide comprehensive services and assist startups in development according to different stages.

In addition, while promoting the five major strategies of the “Asian Asset Management Center”, the Financial Supervisory Commission (FSC) will fully develop a regionally competitive “Asian Fundraising Platform”, also known as the “Asian Nasdaq Project”. He emphasized that Taiwan has strengths in technology, semiconductor, and communication manufacturing, as well as a complete supply chain. The FSC will continue to improve regulations to attract high-quality startups and technology companies from both domestic and abroad to Taiwan, strengthening the capital market.

Peng Jinlong finally stated that through regulatory easing, cross-border cooperation, AI technology application, and virtual asset regulation, Taiwan will accelerate its financial digital transformation and enhance its international competitiveness.

The picture shows Peng Jinlong being interviewed after his speech.

This article by Peng Jinlong from the Financial Supervisory Commission: University-level AI models will be used in the financial industry next year, and the RWA plan has been initiated, first appearing in Chain News ABMedia.