tl;dr
Taiwan's Financial Supervisory Commission (FSC) will enforce new anti-money laundering (AML) regulations for cryptocurrency service providers starting November 30. The rules require registration for AML compliance, with a deadline pushed forward to November 30. Crypto providers must monitor customer...
Taiwan's Financial Supervisory Commission (FSC) will enforce new anti-money laundering (AML) regulations for cryptocurrency service providers starting November 30. The rules require registration for AML compliance, with a deadline pushed forward to November 30. Crypto providers must monitor customer details and transaction activities to comply. Non-compliance may result in fines up to NT$5 million and imprisonment.
This regulatory push follows penalties imposed on two local exchanges, MaiCoin and BitoPro, for AML violations. Taiwan aims to position itself as a global leader in the digital asset space by introducing self-regulatory frameworks and encouraging growth in the sector while tightening oversight.
The deadline for mandatory AML registration for crypto companies was initially January 1, 2025, but the FSC has pushed it forward by a month. Currently, 26 crypto providers are approved to operate in the country, but all of them, registered or not, must comply with the updated AML requirements. They were instructed to monitor customer details such as names, bank account information, IP locations, and account usage patterns. Non-compliance could result in severe penalties, including fines of up to NT$5 million ($153,700) and imprisonment for as long as two years.
Taiwan has been actively advancing cryptocurrency regulations as part of its strategy to position itself as a global leader in the digital asset space. Last month, the Financial watchdog granted professional investors access to exchange-traded funds (ETFs) linked to foreign digital assets. Additionally, the regulator is preparing a pilot program for institutional cryptocurrency custody, with applications set to open in early 2025. Three private banks have already expressed interest in participating in the initiative.