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The Ministry of Digital Affairs (moda) stated that the current "Electronic Signatures Act" has not been amended for over 20 years. To cope with the global digital transformation trend and the rapid development of the digital economy and services, the ministry has proposed an amendment to the "Electronic Signatures Act," which clearly defines the functions of electronic documents and electronic signatures as equivalent to physical documents and signatures, confirming the legal effectiveness of electronic signatures. The draft amendment was approved by the Executive Yuan today (29th) and forwarded to the Legislative Yuan for examination.

In addition to promoting digital economy and smart government, the moda also actively discusses with the Ministry of Economic Affairs about  the addition of "virtual network advertising" business items. In the future, the Ministry of Digital Affairs will promote the verification of digital signatures (a type of electronic signature) before advertising investment publication to effectively reduce investment fraud and ghost advertising accounts, creating a trusted digital environment.

The Ministry of Digital Affairs explained that after the amendment of the Electronic Signatures Act is completed, it will help the general public to choose different levels of electronic signatures according to application needs, fully realizing the advantages of improving efficiency, reducing costs, ensuring transaction security, and reducing environmental burdens. It will not only promote the Affairs of the digital economy industry but also significantly enhance the convenience of cross-border e-commerce and can be applied in daily lives.

To cope with the global digital transformation trend, the moda pointed out that an urgent need for amendment is required. 

The electronic signature refers to a digital technology attached to an electronic document that can identify the identity of the signer and ensure the integrity of the document through encryption technology and various signature records. It meets the specifications of the "Electronic Signatures Act" and has legal effectiveness, such as signing electronic documents with the Ministry of the Interior's Citizen Digital Certificate (TW FidO) or business certificate. If only handwritten signatures on electronic documents with mobile phones or tablets or signatures stored as images are used, such signatures can be easily forged, and the recipient cannot verify whether it is actually signed by the person, which may also have the risk of being separated from the document. Therefore, it does not belong to the definition of electronic signatures as defined by the "Electronic Signatures Act."

The current "Electronic Signatures Act" has been implemented since April 1, 2002. With the global digital transformation trend, the current network environment is more popular than when the law was enacted. Lifestyles and work patterns are gradually changing, and the government and enterprises continue to innovate digital application services, driving the demand for electronic signature use. The "Electronic Signatures Act," which has not been amended for more than 20 years, urgently needs to be revised to cope with the rapid developments of the digital economy and digital services. Since its establishment in August 2022, the Ministry of Digital Affairs has actively studied amendments, conducted amendment announcements and consultations with various sectors from June to August last year.

The draft amendment of the "Electronic Signatures Act" has six main points:

1. Clearly define that electronic documents, electronic signatures, physical documents, and physical signatures have the same functions, and their legal effectiveness cannot be denied solely because of their electronic form.

2. Clearly define digital signatures as a type of electronic signature to clarify the relationship between electronic signatures and digital signatures.

3. Clearly stipulate that digital signatures must have certificates issued by government-licensed certificate authorities and have the legal presumption of being signed or stamped by the person themselves.

4. Balance digital needs and digital inclusion, stipulating that before adopting electronic form, reasonable opportunities shall be given to the opposing parties in a reasonable manner; if the opposing parties do not object, it is presumed that they agree to adopt the electronic form.

5. To enhance the application of electronic documents and electronic signatures by the smart government, remove the current provision that administrative agencies can announce the exclusion of the use of electronic signatures and set a 3-year sunset clause, which means that within 3 years of the implementation of the amendment, administrative agencies must apply this law.

6. Considering the opportunity for future mutual recognition of electronic signatures internationally, the competent authority can recognize the effectiveness of certificates issued by international certificate authorities under the condition of equivalent security, compliance with international reciprocity, or technical interoperability cooperation principles.

Digital signatures save time and effort, making life and business more convenient. 

The existing Ministry of the Interior's Citizen Digital Certificate and business certificate are certificates issued by government-licensed certificate authorities. After the amendment, they can be used for signing electronic documents, which will legally belong to digital signatures with the presumption of "signed by the person themselves," and the application scope will be more extensive.

For example, documents between two companies can be "stamped" online, and quotations no longer need to be exchanged quickly by courier. For  individuals dealing with the government and banks, they don't need to physically sign many documents, and they can quickly complete online signatures through electronic documents.

In terms of international applications, as long as the certificates of both parties are interoperable and the security conditions are equivalent, our courts can recognize the effectiveness of electronic documents. Famous international services such as Acrobat Sign, DocuSign, or Taiwan Network Authentication TWCA electronic document signature verification service, Chunghwa Telecom's Quick Ease Sign A+Sign, and DottedSign can all obtain the same benefits. Signing of international contracts, document exchanges for overseas nationals, etc., no longer need to go through multiple rounds of signing and stamping by mail, now can be completed by online signatures, saving time and effort.

For example, last year, the National Institute for Cyber Security, under the moda, signed a memorandum of cooperation with Lithuania through online signing. Lithuania recognized the "Organization and Group Certificate" (miXed organization Certification Authority, XCA) issued by the Digital Ministry as having complete legal effect through online signing.

In addition, improving the regulations related to electronic signatures will also help effectively deal with the fraud issues that the public is concerned about. As a co-organizer of the Executive Yuan's "New Generation Anti-Fraud Strategy Action Plan 1.5 Version," the moda actively prevents fraud from the source. It is currently discussing with the Ministry of Economic Affairs the addition of "virtual network advertising" business items. In the future, online advertising platforms will need to verify the digital signatures of advertisers, providing platforms with more convenient mechanisms to confirm customer identities, effectively reducing fake accounts from the source, and quickly removing online fraud advertisements through cross-platform joint defense mechanisms.

For example, when political advertisements are posted on social platforms such as Facebook and Instagram, Meta will conduct KYC (Know Your Customer) checks. Advertisers need to provide copies of their IDs, etc., for manual review. After the amendment is passed, KYC can recognize digital signatures, automatising the review process, reducing the review costs of online advertising platforms, and allowing more types of advertisements to apply this practice.

For example, currently, KYC is not required for investment advertisements posted on Meta. Although a one-page scam recognized by the police has been able to block the domain in real-time and remove the advertisement within 24 hours, the advertisement is still displayed on the platform before it is removed. At this time, although clicking on the link will only display a fraud alert from 165, without any substantial losses, it still causes inconvenience. The moda will work with the Financial Supervisory Commission and the Criminal Investigation Bureau of the Ministry of the Interior to develop related mechanisms. In this way, when the police determine fraud, various platforms will receive information synchronously through the joint defense platform, and then quickly remove other advertisements published by the same signatory, achieving the cross-platform joint defense goal.

The moda is committed to leveraging digital technology to create a safe, reliable, and trustworthy digital environment. This includes launching the 111 government-specific shortcode SMS platform, government-specific short URLs, and promoting advanced technologies such as zero trust and mobile  Citizen Digital Certificate (TW FidO). The amendment to the "Electronic Signatures Act" is precisely to build the important foundation of digital trust. The moda will assist the digital economy-related industries under its jurisdiction in promoting the popularization and application of electronic signatures, accelerating the digital transformation of various industries. The moda will also actively communicate and coordinate with the Legislative Yuan, hoping to complete the legislative process as soon as possible to meet the expectations of various sectors of society for this bill.