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Taiwan Tightens Cybersecurity Measures as Global Threats Loom

Taiwan has taken a significant step to bolster its cybersecurity defenses as the world grapples with an increasing number of cyberattacks. The Executive Yuan, the country’s cabinet, has established a new agency, the Ministry of Digital Affairs (MoDA), to oversee and regulate cybersecurity.

The New Agency: MoDA

The MoDA, which began operations on August 27, will also be responsible for digital developments such as e-commerce, electronic signatures, e-government, and data governance. The move comes in response to frequent cyberattacks on major Taiwanese government agencies and large companies.

Key Responsibilities of MoDA

  • Oversee and regulate cybersecurity
  • Develop and implement digital policies and regulations
  • Promote e-commerce, electronic signatures, e-government, and data governance

Cybersecurity Laws

Taiwan’s Cybersecurity Management Act is the primary legislation governing cybersecurity in the country. However, the act only applies to government agencies and specific non-government entities such as critical infrastructure providers, state-owned businesses, and government-sponsored foundations.

Key Provisions of the Act

  • Government agencies must establish and implement their own cybersecurity maintenance plans
  • Agencies must set up a reporting and response mechanism for cybersecurity incidents
  • Agencies must notify authorities within one hour of discovering an incident

Cybercrime

Cybercrime is a significant concern in Taiwan, with various laws addressing different types of cyber offenses. These include hacking, phishing, denial-of-service attacks, malware, forgery, and unauthorized access to telecommunications facilities.

Personal Data Protection

Personal data protection is also a critical area of focus, with the Personal Data Protection Act regulating the collection, processing, and use of personal data. The act requires data controllers to have appropriate measures in place to prevent data breaches and notify affected individuals in an appropriate manner after investigating the incident.

Corporate Governance

In Taiwan, directors bear a fiduciary duty to the company and will be held liable if they breach this duty. However, a company’s failure to prevent, mitigate, manage or respond to a cybersecurity incident may not necessarily conclude that its directors have breached their fiduciary duty.

Key Requirements for Companies

  • Companies listed on the Taiwan Stock Exchange (TWSE) or the Taipei Exchange (TPEx) with paid-in capital of NTD10 billion (USD325.2 million) or more must designate a chief information security officer (CISO)
  • Companies mainly conducting e-commerce must also designate a CISO

Impact on Businesses

The establishment of the MoDA and the tightening of cybersecurity measures in Taiwan will have significant implications for businesses operating in the country. Companies must ensure that they have adequate cybersecurity defenses in place to prevent data breaches and protect against cyber threats.

Key Recommendations for Businesses

  • Implement robust cybersecurity measures, including establishing a CISO role
  • Conduct regular risk assessments
  • Provide employee training on cybersecurity best practices

In conclusion, Taiwan’s efforts to bolster its cybersecurity defenses are a welcome step towards protecting businesses and individuals from the increasing threat of cyberattacks.