- Taiwan’s Ministry of Justice has proposed amendments to enhance anti-money laundering (AML) measures within the crypto industry.
- The new proposals will mark a substantial shift from the current regime, in which digital currency firms’ non-compliance is met with administrative penalties, to a stricter legal framework that includes criminal penalties for serious breaches.
- The proposed legal framework would require domestic and international cryptocurrency firms operating in Taiwan to register and demonstrate compliance with AML regulations.
Taiwan’s Ministry of Justice proposes stricter anti-money laundering measures for the crypto industry, including criminal penalties for non-compliance.
From Crypto Administrative Penalties To Criminal Charges
These changes are part of Taiwan’s ongoing efforts to align its regulatory environment with global standards, particularly as digital assets play an increasingly prominent role in the financial sector. The proposed legal framework would require domestic and international cryptocurrency firms operating in Taiwan to register and demonstrate compliance with AML regulations. Failure to meet these requirements could lead to severe consequences, including imprisonment. Under the current system, Taiwanese authorities have limited powers, mainly restricted to imposing fines on firms that fail to adhere to AML protocols, according to Deputy Minister of Justice Huang Mou-hsin. However, the newly proposed amendments by the Ministry of Justice aim to escalate the severity of penalties.
Expanding The Scope Of AML Laws
The proposed amendments target crypto firms’ compliance and aim to integrate specific provisions for digital assets into Taiwan’s existing AML legislation. Under these proposals, individuals using cryptocurrencies for money laundering could face prison terms of six months to five years. They may also be subject to fines of up to NT$50 million (approximately $1.5 million). This inclusion of cryptocurrencies explicitly in the AML laws signifies a comprehensive approach to tackling financial crimes in the digital age. The proposed changes are now set to be reviewed by the Legislative Yuan, Taiwan’s national parliament. This step is crucial for the amendments to become law and reflects the government’s commitment to creating a “robust” regulatory framework for the burgeoning crypto industry.
Conclusion
The proposed amendments by Taiwan’s Ministry of Justice signify a shift in the regulatory landscape for the crypto industry. The inclusion of criminal penalties for non-compliance and the explicit mention of cryptocurrencies in AML laws indicate a comprehensive approach to tackling financial crimes in the digital age. These changes, if enacted, could have significant implications for both domestic and international crypto firms operating in Taiwan.
