The legislation of Electronic Payment Institution Regulations is a milestone of Taiwan’s e-commerce, it allow people and firms to use electronic payment which provided by third-party on the Internet, also can break the borders and space constraints, shorten trading hours.

In order to ease the influence of electronic payment company collapse, the Electronic Payment Institution Regulations stipulates that electronic payment providers must set aside funds to trust all payment which receives from users, or to obtain full bank guarantee. The new law also set a strict verification of user account identity, to record all related data in the transactions, the violation of the law will be fined NT$ 600,000 to NT$ 3,000,000.

Foreign companies want to operate electronic payment services in Taiwan, must apply for permission from Taiwan government, or will be liable to five years imprisonment, criminal detention or a fine of NT$ five million. The electronic payment company involving China investment should comply with the relevant ordinance of cross-strait relations.

In addition, the new law allows electronic payment services company to run electronic ticket business.