Taiwan has accelerated the implementation of its new anti-money laundering (AML) regulations for cryptocurrency businesses.
On November 27, the Financial Supervisory Commission (FSC) brought forward the registration deadline for crypto exchanges, moving it from January 1, 2025 to November 30, 2024.
Under the new regulations, virtual asset service providers (VASPs) that fail to register with the government could face penalties, including fines of up to approximately $155,900 or a two-year prison sentence.
The updated mandate affects both new and previously registered crypto businesses. According to FSC records, 26 cryptocurrency providers are currently permitted to operate under current regulations, but all entities – regardless of prior registration – must now comply with the new AML requirements. The FSC noted that no company has yet completed the mandatory registration for the prevention of money laundering.
To help identify suspicious activity, the FSC has issued guidelines for crypto exchanges, including monitoring unusual customer behavior such as discrepancies in personal information, IP address tracking, and multiple trading accounts. As part of its enforcement efforts, the FSC recently fined two premises. exchanges, MaiCoin and BitoPro, for failure to comply with AML standards, including matters related to customer due diligence, transaction monitoring and recordkeeping.
Crypto service providers must submit a one-page form describing their business activities to comply with the new registration requirement. Any changes to the information provided must be reported to the Over-The-Counter (OTC) Securities Trading Center within five business days. Additionally, companies are required to establish a quality management system for financial auditing and accounting practices.
Taiwan imposes AML fines on MaiCoin and BitoPro
Recent enforcement actions against two leading cryptocurrency exchanges, MaiCoin and BitoPro, underscore Taiwan’s commitment to upholding its new AML regulations. The fines imposed on the two exchanges serve as a clear message to other VASPs operating in Taiwan, emphasizing the importance of strict compliance with the country’s financial laws. These actions are part of Taiwan’s broader strategy to ensure a secure and well-regulated environment for digital assets, fostering a market that operates transparently while protecting against financial crimes such as money laundering and fraud. The authorities’ proactive stance reflects their determination to make Taiwan a reliable hub for blockchain and cryptocurrency activities.
