Draft Amendments to Act Governing Electronic Payment Institutions Approved at First Reading of Finance Committee of the Legislative Yuan

On 9 November 2020, the Finance Committee of the Legislative Yuan approved draft amendments to the Act Governing Electronic Payment Institutions (“Electronic Payment Act”) during its First Reading.
Under the currently effective Electronic Payment Act, approved electronic payment institutions are allowed to operate mainly three types of businesses: (1) serving as a third-party agent for collecting and making payments for real world transactions; (2) accepting fund deposits as stored values; and (3) transferring funds between accounts at the same electronic institution.
The draft amendments include several important changes that, if finally passed and enacted, will allow approved electronic payment institutions to conduct an additional twelve types of businesses, including, for example, (1) domestic or foreign small amount currency exchanges (including Chinese Renminbi); (2) cross-institution fund transfers via a special transaction platform; and (3) the establishment of a reward exchange platform where vouchers and reward points from different issuers can be utilized, cumulatively.
If the draft amendments pass the legislative process, they are expected to become effective in the first half of 2021.
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