- Taiwan’s Ministry of Justice proposes amendments to anti-money laundering (AML) laws, targeting non-compliant cryptocurrency service providers with fines and jail terms.
- The proposed amendments include stricter registration requirements for domestic and international virtual asset service providers (VASPs) and harsher penalties for non-compliance.
- These changes come as Taiwan takes steps towards crypto regulation and industry self-regulation, with the Financial Supervisory Commission planning to introduce new laws for digital assets by September 2024.
Taiwan’s Ministry of Justice proposes stricter AML regulations for cryptocurrency firms, potentially resulting in hefty fines and jail terms for non-compliance. The move is part of Taiwan’s broader efforts towards crypto regulation and industry self-regulation.
Taiwan Proposes Stricter AML Regulations for Cryptocurrency Firms
Taiwan’s Ministry of Justice has proposed amendments to the city’s existing AML laws, targeting both domestic and overseas cryptocurrency firms operating in Taiwan. The proposed amendments mandate these firms to register for AML compliance, with non-compliance potentially resulting in up to two years of imprisonment and fines reaching $1.5 million. The amendments include regulations targeting fraud prevention, money laundering prevention, technology investigation and security, and communications security and supervision.
Harsher Penalties for Non-Compliant VASPs
Under the proposed amendments, VASPs risk imprisonment if they provide services without proper registration. Additionally, a new legal category has been introduced addressing money laundering offenses related to third-party payment accounts and virtual asset accounts. Overseas crypto platforms must establish local entities and apply for AML registration to avoid criminal penalties. Offenders using cryptocurrency for money laundering could face prison terms ranging from six months to five years, alongside fines of up to NT$50 million ($1.5 million).
Taiwan’s Move Towards Crypto Regulation and Industry Self-Regulation
Taiwan initiated anti-money laundering rules for cryptocurrency service providers in July 2021 under the Financial Supervisory Commission. The latest proposal follows the announcement on March 4 that Taiwan’s Financial Supervisory Commission (FSC) had announced plans to introduce new laws for digital assets by September 2024. In parallel, Taiwan’s crypto sector is moving towards establishing an industry association, with key players such as BitstreetX, Hoya Bit, Bitgin, Rybit, Xrex, and Shangbito joining forces to strengthen the crypto industry and enhance cooperation with regulatory bodies.
Conclusion
The proposed amendments to Taiwan’s AML laws reflect the country’s commitment to regulate the crypto industry and mitigate risks associated with money laundering and fraud. The move towards stricter regulations and industry self-regulation signals a maturing crypto landscape in Taiwan, with potential implications for the global crypto market.
