The Ministry of Digital Affairs（MODA）released an explanatory decree titled “Electronic Signature Technologies Recognized as Effective” on December 2, 2022, listing algorithms for effective “electronic signatures” and the technology's international standards that follow the Electronic Signatures Act. Platforms for electronic signatures that employ the above-mentioned algorithm or technology standards, with consent from the parties involved, are considered effective electronic signatures, which resolves the past difficulties in determining what constitutes an electronic signature, and will in turn boost development in the digital economy. Due to the pandemic's worldwide spread, the electronic signature has made frequent appearances in commercial activities to help prevent the virus from spreading through in-person contact; spawned from this were questions from business owners about whether Adobe Sign and Docusign, while often used internationally, fit the definition of electronic signatures as defined in Taiwan's Electronic Signatures Act.

In response to calls to clarify which electronic signatures are considered to be valid, the MODA gathered the involved associations and industry representatives, along with the European Chamber Of Commerce Taiwan, the American Chamber of Commerce in Taiwan, the Bankers Association of the Republic of China, and the Taipei Computer Association, etc., for a discussion that resulted in the December 2, 2022 release of the explanatory decree （No. 1114000229） titled “Electronic Signature Technologies Recognized as Effective,” in which algorithms and cyber security technology standards commonly seen internationally, listing examples such as the Public Key Infrastructure technology and structure, the signature format or algorithm established by international organizations including the European Telecommunications Standards Institute, the U.S. National Institute of Standards and Technology or the ISO for reference, and boosting practical usage of electronic signatures.

Technology for effective electronic signatures should be able to prevent alteration and falsification to meet the requirements for an electronic signature as stated by the Electronics Signatures Act, which defines it as “data attached to and associated with an electronic record, and executed with the intention of identifying and verifying the identity or qualification of the signatory of the electronic record and authenticating the electronic record,” the MODA stated. According to a consensus reached by technology experts gathered by the MODA, based on currently implemented standards and technological standards, when the algorithms and cyber security technology listed in the abovementioned decree have reached the requirements stated, a legally effective electronic signature is constituted and can be used in practice.

The employment of electronic signatures should not suffer discreditation due to its digital form; the MODA is hopeful that this decree will be helpful in boosting the practical use of electronic signatures. That being said, businesses that provide electronic signature services should also provide proof of accepted technology to promote practical use in the market.

The original article content can be found at: https://moda.gov.tw/ADI/news/latest-news/3479