Crypto AML Registration: Taiwan’s Updated AML Rules Set to Reshape Crypto Industry Compliance Landscape
The Financial Supervisory Commission (FSC) of Taiwan has declared that its regulations on anti-money laundering (AML) for digital currency service providers have been significantly expedited. The registration deadline was originally set for January 1, 2025. However, the Taiwanese government has confirmed that it has been brought forward to November 30, 2024.
This action by Taiwan‘s authorities comes after several cryptocurrency exchanges were hit with hefty fines for allegedly failing to comply with the current anti-money laundering regulations. According to reports, 26 virtual asset service providers (VASPs) have received formal approval to operate in Taiwan. The most recent regulation, however, requires all cryptocurrency-focused businesses to follow the AML registration criteria regardless of prior registration.
Taiwan Introduces New Reporting Rules for Crypto Firms to Prevent Money Laundering
Not registering might result in additional fines and possibly two years in jail. However, according to the FSC, none of the service providers have successfully finished the VASP Registration Measures Money Laundering Prevention Registration. With the order to monitor possibly fraudulent or suspicious transactions and other forms of criminal activities, the FSC has published a checklist for crypto-asset exchanges to aid with compliance rules.
MaiCoin and BitoPro were reportedly punished by the FSC as part of an enforcement action for infractions related to consumer due diligence, accurate record-keeping, and reporting suspicious transactions. VASPs must now submit a form detailing their operations and disclosing any updates to their firm details within five business days, as part of the revised regulatory framework.
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