Taiwan prepares AML registration timeline for crypto companies
Taiwan is taking regulatory steps to govern its growing crypto sector. In a recent move, the country has made anti-money laundering (AML) compliance mandatory for crypto companies. As the crypto ecosystem expands, Taiwan has become a hub for Web3 initiatives. According to Statista, the Taiwanese crypto market is expected to grow at an annual rate of 7.75 percent between 2024 and 2028.
This week, Taiwan’s Financial Supervisory Commission (FSC) announced that all crypto companies currently operating or planning to establish businesses in the country must submit AML registrations. The FSC has accelerated the registration deadline and moved it to November 30, 2024, from the original date of January 1, 2025, as reported by Cointelegraph reports this referring to information from official documents.
“Companies or individuals established abroad to provide virtual asset services are not allowed to provide virtual asset services in my country unless they have registered the establishment of a company or branch in accordance with have completed the Company Law and the registration for the prevention of money laundering”, the English translation of the official document printed in Mandarin said.
Virtual Assets Service Providers (VASPs) who violate FSC’s instructions could reportedly face up to two years in jail or a fine of up to TWD 5 million (approximately Rs. 1.30 crore).
Under Taiwan’s anti-money laundering regulations, companies must provide details of the measures they implement to prevent the use of their platforms for the movement of illicit funds via cryptocurrencies. Crypto exchanges are also needed to monitor and report to the government the names, account details and locations of suspicious customers in a timely manner.
The accelerated deadline for AML registrations in Taiwan follows recent fines imposed by the FSC on exchanges MaiCoin and BitoPro for AML violations.
The FSC is stepping up its oversight of crypto activities in Taiwan as it aims to integrate Web3 services into the country’s financial ecosystem. In October, FSC official Hu Zehua said the regulatory body is open to involving financial institutions in pilot programs for virtual asset custody services, following growing interest from private lenders in this area.
Similarly, countries like India and Japan have also made AML compliance mandatory for crypto companies. These regulations require crypto companies to assist law enforcement in monitoring and addressing potential criminal activity within the crypto space.
