- Taiwan’s new AML laws require all crypto firms to register, risking up to 2 years in jail or NT$5M fines for non-compliance.
- Overseas crypto platforms must establish local entities and register for AML compliance to avoid criminal penalties in Taiwan.
- Taiwan’s FSC plans to propose a special crypto law by June 2025, indicating a comprehensive future regulatory framework.
The legislative branch of Taiwan switched the anti-money laundering rules, which have grown more rigid in terms of the adherence of cryptocurrency companies. Semi-official Central News Agency said that these changes were made in the third reading on Tuesday late at night through the Legislative Yuan.
Thus, companies and individuals in Taiwan offering bitcoin services now must register to abide by AML requirements. Breaking the rules carries a maximum fine of NT$5 million ($153,800) or two years in prison.
Additionally, foreign cryptocurrency platforms need to register as AML firms and establish local entities. If not, there can be criminal consequences. The new regulations would increase regulatory control in Taiwan and affect both foreign and domestic cryptocurrency service providers.
Stricter Penalties and Compliance
As per the July 2021 regulations issued by the Financial Supervisory Commission (FSC), Taiwan requires crypto service providers to comply with anti-money laundering (AML) laws. But up until now, only administrative consequences have been applied.
Deputy Minister of Justice Huang Mou-hsin emphasized that this was the extent of their authority until now. The new amendments elevate the consequences for non-compliance.
Moreover, Kevin Cheng, a crypto lawyer and secretary general of the Taiwan Fintech Association, highlighted potential challenges. He noted that businesses not completing AML declarations would face uncertainty regarding review standards. They might have to restart the registration process once standards are finalized. Even those compliant with AML registration could expect stricter reviews in the future.
Future Regulatory Landscape
Furthermore, the FSC is considering a special law proposal for crypto assets. FSC Chair Jin-Lung Peng mentioned plans to submit this proposal to the Executive Yuan by June 2025. This indicates a long-term strategy to establish a comprehensive regulatory framework for the crypto industry.
Additionally, Taiwan’s local crypto sector has proactively established an industry association. This association aims to create self-supervisory rules aligned with government guidelines. This step reflects the industry’s readiness to collaborate with regulatory bodies and ensure compliance.
These developments underscore Taiwan’s commitment to curbing illicit activities in the crypto space. By enforcing stringent AML requirements, Taiwan aims to enhance the integrity and security of its financial system. Hence, crypto businesses operating in Taiwan must promptly adapt to these new regulations to avoid severe penalties and ensure smooth operations.
Read also:
The post Taiwan Strengthens Crypto Rules with New Anti-Money Laundering Updates appeared first on Crypto News Land.
Earn more CFN tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://cryptoforum.news0
CFN Comment Policy
Your comments MUST BE constructive with vivid and clear suggestion relating to the post.
Your comments MUST NOT be less than 5 words.
Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.
Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.
Constructive REPLY to comments is allowed