Taiwan’s Financial Supervisory Committee Unveils Digital Identity Verification Roadmap Amid Growing Resistance to National ID Scheme
The Taiwanese government has taken a significant step towards implementing digital identity verification, with the financial industry playing a key role. The Financial Supervisory Committee (FSC) has launched a supervision sandbox and business trial program designed to encourage financial institutions and fintech firms to incorporate digital ID technologies into their services.
New Guidelines for Digital Identity Verification
In response to new guidelines issued by the FSC last fall, 25 counseling requests have been received from 17 financial institutions as part of the initiative. The committee has approved trials related to digital ID verification and authentication for:
- Taiwan Cooperative Bank: granted permission for live operations
- Yuanta Bank: granted permission for live operations
- Eight other applicants: approved for trials
The FSC’s new guidelines aim to make it easier for businesses to adopt digital ID technologies without having to draft or revise standards for every new scenario.
FIDO Technology and Data Sharing
As part of its efforts to promote digital identity initiatives, the FSC has released an updated development roadmap that specifically advocates for the use of FIDO (Fast Identity Online) technology for identity verification. Five applicants to the business trial program have sought authorization to leverage FIDO in data sharing between subsidiaries for online account opening purposes.
Challenges and Controversies
Despite the FSC’s efforts, Taiwan’s planned national digital ID scheme has faced resistance from the public and judicial bodies. A Taiwanese court ruled last year that the implementation of a digital ID program without citizen consensus and special data protection laws could lead to human rights violations.
The Future of Digital Identity in Taiwan
The FSC remains committed to promoting digital ID adoption, encouraging financial institutions and fintech players to use technology combined with innovation to develop diversified digital financial services. As Taiwan continues to navigate the complexities of implementing a national digital ID scheme, the FSC’s efforts are likely to play a crucial role in shaping the country’s digital future.
Key Takeaways:
- The Taiwanese government is promoting digital identity verification through the financial industry
- The Financial Supervisory Committee has launched a supervision sandbox and business trial program for financial institutions and fintech firms
- FIDO technology is being advocated for use in data sharing between subsidiaries for online account opening purposes
- Taiwan’s national digital ID scheme has faced resistance from the public and judicial bodies