Crypto Firms in Taiwan Face Strict AML Regulations, Registration by 2025
- Taiwan mandates crypto firms to register for anti-money laundering compliance by September 2025.
- Non-compliance could result in severe penalties, including imprisonment.
- The new rules require crypto service providers to meet strict registration conditions and procedures.
The Financial Supervisory Commission (FSC) in Taiwan has drafted new AML regulations, marking a serious step toward the development of the countrys regulatory framework concerning cryptocurrency.
With amendments in July, these regulations necessitate that all VASPs declare their registration with the FSC before the end of September 2025. Failure to comply may mean the warrants being issued, including prison sentences of up to two years, making Taiwan tough on illegal activities in the crypto world.
A Detailed Registration Framework
The FSC has defined an all-detailed registration system in its Money Laundering Prevention and Registration Measures for Enterprises or Personnel Providing Virtual Asset Services draft. VASPs shall apply for registration in a specific business category, namely, virtual asset exchanges, trading platforms, custodians, and transfer service providers.
Key elements composing the draft include negative qualification requirements imposed on individuals operating such businesses. It will also guarantee that responsible persons or beneficiaries comply with standards imposed by law. The registration will also encompass information in the procedures, which are document filing, time of registration, and cases of termination of business.
Besides that, the FSCs AML framework also demands strict compliance with legal requirements with respect to the segregation of customers assets from the companys assets, security of information, and handling of customer complaints.
Crypto Industry to Align with Revised Anti-Terrorism Measures
Moreover, the FSC has revamped the existing anti-money laundering and combating the financing of terrorism for the same. According to the newly introduced rules, VASPs are to perform risk assessments and report on a yearly basis.
They are also supposed to put in place mechanisms that involve internal control and audit, corresponding to the Money Laundering Prevention Law of Taiwan and relevant regulations set by the Virtual Currency Business Association.
The new measures dispel the compliance statement regime currently applicable and instead provide for all VASPs to register upon the operation of the new registration regulations. For this, the FSC recommends that businesses not send in their documents beforehand to avoid applying under different regimes.
Nevertheless, with these regulations, Taiwan moves closer to a more regulated and transparent crypto environment, bringing its laws into conformity with global standards in combating money laundering and financial crimes within the industry.
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Read more: https://www.tronweekly.com/crypto-firms-in-taiwan-strict-aml-regulations/
Text source: TronWeekly
