Taiwan will make AML rules for crypto firms tougher by 2025
The Financial Supervisory Commission (FSC) of Taiwan has made new rules for virtual asset service providers (VASPs) to follow when it comes to stopping money laundering (AML). These rules should be fully followed by September 2025. When these new rules go into action on January 1, 2025, they will make it easier for the country to keep an eye on activities related to cryptocurrencies and make sure they are more in line with international financial standards.
All crypto companies that do business in Taiwan must now register with the government by September 2025, according to the new rules. If you don’t, you could face harsh punishments like fines of up to NT$5 million (about $155,900) or two years in jail. For these penalties to not happen, even companies that followed the old AML rules will have to re-register under the new system.
Better rules for crypto companies to follow
With the new AML system, crypto companies will have to follow stricter rules. Companies must not only register, but also send an annual risk assessment report to the right officials. This report will help them stay in line with Taiwan’s financial laws and lower the risk of doing illegal things like theft and money laundering.
Crypto companies will also have to meet extra requirements, such as showing that the people in charge of them have never been convicted of a crime and have the right professional experience. The FSC wants to bring the crypto industry closer to the standards used by traditional financial institutions, and the new rules stress how important it is to keep customer funds and operations safe.
More changes to the laws in the crypto sector
Along with the new AML laws, the FSC is also creating a complete set of laws for crypto assets. We plan to send this suggestion by the middle of 2025. It will probably cover a wider range of issues related to regulating cryptocurrencies. We expect to finish the draft law by the end of 2024. This will make Taiwan’s laws about digital assets much better.
Taiwan is trying to keep its banking sector competitive and in line with global standards, and these new rules are part of that. Other countries like Japan and Hong Kong have already done this. Taiwan wants to protect buyers and make it safer for people to buy and sell digital assets by tightening its grip on the crypto industry.
More attention being paid to investments in digital assets
Even though the rules are getting tighter, Taiwan is still getting more involved in the digital asset market. The FSC recently let professional investors in Taiwan buy foreign crypto exchange-traded funds (ETFs). This was done to make the local financial market more competitive.
With these new anti-money laundering rules and the growing number of business possibilities in digital assets, Taiwan is setting itself up to be a regional center for cryptocurrency innovation while also making sure it follows international rules.
