Taiwan Aligns with India, Japan on AML Regulations for Crypto Businesses, Accelerates Registration Deadline

The Financial Supervisory Commission (FSC) oversees the crypto ecosystem in Taiwan.

Written by Radhika Parashar, Edited by Siddharth Suvarna | Updated: 29 November 2024 18:48 IST

Taiwan Aligns with India, Japan on AML Regulations for Crypto Businesses, Accelerates Registration Deadline

Photo Credit: Unsplash/ Roméo A

The FSC recently fined MaiCoin and BitoPro for AML violations

Highlights

Violators can face up to two years in prison
A TWD 5 million fine may also be levied
FSC Taiwan is looking to integrate crypto with existing financial systems

Taiwan is taking regulatory steps to govern its growing crypto sector. In a recent move, the country has made compliance with anti-money laundering (AML) laws mandatory for crypto firms. With the crypto ecosystem expanding, Taiwan has become a hub for Web3 initiatives. According to Statista, Taiwan's crypto market is projected to grow at an annual rate of 7.75 percent from 2024 to 2028.

This week, Taiwan's Financial Supervisory Commission (FSC) announced that all crypto firms currently operating or planning to establish businesses in the country must submit for AML registrations. The FSC has expedited the registration deadline, moving it up to November 30, 2024, from the original date of January 1, 2025, as reported by CoinTelegraph reported citing information from official documents.

“Enterprises or persons established overseas to provide virtual asset services may not provide virtual asset services within my country unless they have registered the establishment of a company or branch in accordance with the company law and completed money laundering prevention registration,” the English translation of the official document printed in Mandarin said.

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Virtual Assets Service Providers (VASPs) who are found to be in violation of FSC's instructions could reportedly face up to two years in prison or a fine of up to TWD 5 million (roughly Rs. 1.30 crore).

Under Taiwan's anti-money laundering regulations, companies must provide details on the measures they are implementing to prevent the use of their platforms for the movement of illicit funds via cryptocurrencies. Crypto exchanges are also required to monitor and report the names, account details, and locations of suspicious customers to the government in a timely manner.

The accelerated deadline for AML registrations in Taiwan follows recent fines imposed by the FSC on exchanges MaiCoin and BitoPro for AML violations.

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The FSC is intensifying its oversight of crypto activities in Taiwan as it seeks to integrate Web3 services into the nation's financial ecosystem. In October, FSC official Hu Zehua stated that the regulatory body is open to involving financial institutions in pilot programs for virtual asset custody services, following growing interest from private lenders in this area.

Similarly, countries like India and Japan have also mandated AML compliance for crypto firms. These regulations require crypto companies to assist law enforcement in monitoring and addressing potential criminal activities within the crypto space.

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Further reading: Cryptocurrency, Taiwan, Crypto Rules, FSC, Anti Money Laundering

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More