Taiwan’s Regulator Will Implement Stricter AML Rules on Friday

Taiwan’s Financial Supervisory Commission (FSC) has accelerated the implementation date of its anti-money laundering (AML) regulations for cryptocurrency. These regulations will now go into effect on November 30, a month earlier than originally planned, in order to strengthen measures against fraud.

According to the FSC, the new laws require crypto service providers, such as exchanges, to register for AML compliance. Failure to comply may result in severe penalties, including imprisonment for up to two years and fines of up to NT$5 million.

The FSC has emphasized that virtual asset service providers (VASPs) from overseas must establish a company or branch office under Taiwan’s Company Act and complete the necessary AML registration in order to operate within the country. In October, FSC Chair Jin-Lung Peng stated that the decision to expedite the AML regulations was motivated by the need to enhance measures against fraud in light of increasing violations.

The new rules aim to address a range of issues, including the custody of fiat currency, information security, procedures for handling customer complaints, record-keeping, and disclosure of information.