Taiwan has accelerated the introduction of its regulatory Anti-Money Laundering (AML) framework for crypto businesses. The new regulations, set to start nearly a month in advance, require Virtual Asset Service Providers (VASPs) to comply with the registration mandate to prevent stricter penalties.
Taiwan Fast-Tracks New AML Mandate
Taiwan’s Financial Supervisory Commission (FSC) recently announced it would advance the implementation of its crypto AML registration regulation from January 1, 2025, to November 30, 2024.
The AML overhaul, announced in October, will introduce stricter AML guidelines for VASPs and require all crypto firms to complete the AML registration with the Taiwanese government by September 2025.
The businesses that fail to register will not be authorized to offer services in the country and could face a two-year prison sentence or fines of up to 5 million NTD, worth around $155,000.
Per the new regulations, the listing and delisting of digital assets will be closely monitored, and crypto firms are expected to establish measures against illicit trading and report any suspicious activity related to trading volume and price movement.
Moreover, FSC requires registered crypto service providers to prepare an annual risk assessment report and detail client assets. The regulator mandated digital asset custodians to hold customer assets in trust or separate them from the platform’s assets.
To register, firms must submit a form that outlines their business nature. Any changes to the information provided in this form should be updated within five business days with the Securities Over-the-counter (OTC) Trading Center.
The new regulatory framework will replace Taiwan’s current system for VASPs. Companies that completed the previous AML regulations must comply with the new system and complete the registration process.
After the announcement, the FSC fined two local exchanges, MaiCoin and BitoPro, for violating AML guidelines related to customer due dil
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Author: Rubmar Garcia
