Taiwan strengthens its crypto AML mandate with tighter registration requirements and harsher penalties for noncompliance.
The introduction of Taiwan’s new Anti-Money Laundering (AML) regulations for cryptocurrency businesses was expedited following the imposition of fines on two crypto exchanges for violations.
The Financial Supervisory Commission (FSC) announced on November 27 that the impending money laundering prevention registration mandate for crypto exchanges has been postponed from the previous deadline of January 1, 2025, to November 30.
Per the previous notification, virtual asset service providers (VASPs) who neglect to register with the government may be fined up to 5 million New Taiwan dollars ($155,900) or serve a two-year penitentiary sentence.
New Mandate Encompasses Crypto Enterprises That Were Previously Registered
26 crypto providers are authorized to continue providing their services, as indicated by Taiwan FSC records.
All crypto entities, regardless of whether they have been previously registered or not, are required to register by the new AML mandate. It was stated by the authority:
“No business operators have completed the Money Laundering Prevention Registration under the VASP Registration Measures.”
An inventory of items that crypto exchanges can utilize to monitor suspicious transactions or activities was provided by the authority.
Crypto service providers must examine names and bank account details, location via IP addresses, multiple trading accounts, and frequent information changes, among other things when identifying suspicious customers.
Additionally, Taiwanese cryptocurrency exchanges were requested to monitor anomalous transaction activities, such as the utilization of multiple accounts with the same IP address, the splitting of funds, and the switching of assets.
Cracking Down On Cryptocurrency Exchanges That Violate Anti-Money Laundering Regulations
The FSC fined crypto exchanges MaiCoin and BitoPro on Nov. 28 for AML violations about customer due diligence (CDD), transaction monitoring, record-keeping, and suspicious transaction reporting, according to a Regulation Asia report.
To comply with Taiwan’s anti-money laundering regulations, crypto service providers must submit a one-page form that elaborates on the nature of their operations.
The form specifies that the Securities Over-the-counter (OTC) Trading Center must be notified of any modifications to the business or the information provided within five business days.
Additionally, crypto enterprises will be required to implement a quality management system for the purpose of accounting and auditing their finances.
