{"id":95665,"date":"2024-10-04T10:31:45","date_gmt":"2024-10-04T14:31:45","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=95665"},"modified":"2024-10-04T10:34:16","modified_gmt":"2024-10-04T14:34:16","slug":"taiwan-fsc-implements-new-aml-rules","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/taiwan-fsc-implements-new-aml-rules\/","title":{"rendered":"Taiwan FSC Implements new AML Rules for Crypto Firms"},"content":{"rendered":"\n

Virtual asset service providers must comply with the new anti-money laundering legislation that Taiwan's Financial Supervisory Commission<\/a> has adopted or face penalties.\u00a0
<\/p>\n\n\n\n

\"Taiwan
Taiwan FSC Implements new AML Rules for Crypto Firms<\/figcaption><\/figure>\n\n\n\n

According to a recent release, the FSC has reportedly published a draft of the “VASP Registration Regulations,” which will go into force on January 1, 2025. <\/p>\n\n\n\n

These actions come after the AML Act was modified in July 2024 as part of Taiwan's larger initiatives to control the expanding cryptocurrency industry. <\/p>\n\n\n\n

In contrast to previous anti-money laundering legislation, the new rules specifically target companies involved in cryptocurrency trading and require virtual asset service providers<\/a>, including custodians, trading platforms, and cryptocurrency exchanges, to register and adhere to more stringent anti-money laundering procedures.<\/p>\n\n\n\n

As part of the new regulations, VASPs must build up internal control and audit systems and submit yearly reports on risk assessments.\u00a0<\/p>\n\n\n\n

Penalty for Non-Compliance\u00a0<\/h2>\n\n\n\n

Within three months of the law's implementation date, VASPs that have already finished compliance disclosures under Taiwan's previous AML legislation\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> must register under the new one. <\/p>\n\n\n\n

In order to avoid penalties, other firms\u2014including new entrants\u2014must finish their registration by September 30, 2025. <\/p>\n\n\n\n

According to the local media, twenty-six companies have already finished their compliance filings. These entities risk up to two years in prison and a maximum punishment of NT$5 million (approximately $156,140) for failing to register on time. <\/p>\n\n\n\n

Prior to now, the only sanctions available for non-compliance were fines. A complete “special law” for virtual assets is reportedly being drafted, according to the FSC. By the end of December 2024, a final draft of this law should be completed and submitted to the Executive Yuan by June 2025. <\/p>\n\n\n\n

Additional rules about capital requirements, hiring criteria, and other norms will be implemented under the special law. <\/p>\n\n\n\n

The event comes as FSC Chairman Huang Tianzhu previously warned about a spike in illegal activity<\/a> in the cryptocurrency field and demanded more severe punishments for noncompliant exchanges. <\/p>\n\n\n\n

He also stated that cryptocurrencies have no direct link to the real economy. Taiwan is also gradually lining up with international markets welcoming investments in digital assets. <\/p>\n\n\n\n

On September 30, the FSC let local brokers provide access to foreign cryptocurrency exchange-traded funds for professional investors, including institutional and high-net-worth individuals.<\/p>\n\n\n\n

BitoGroup, the parent firm of the Taiwanese cryptocurrency exchange BitoPro, was granted permission by regulators in June to launch cryptocurrency-friendly bank accounts<\/a> in collaboration with Far Eastern International Bank. This initiative enables investors to utilize banking services while sending funds to the exchange.<\/p>\n","protected":false},"excerpt":{"rendered":"

Virtual asset service providers must comply with the new anti-money laundering legislation that Taiwan’s Financial Supervisory Commission has adopted or face penalties.\u00a0 According to a recent release, the FSC has reportedly published a draft of the “VASP Registration Regulations,” which will go into force on January 1, 2025. These actions come after the AML Act […]<\/p>\n","protected":false},"author":43,"featured_media":95666,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[2284,22216,10799],"class_list":["post-95665","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-aml","tag-financial-supervisory-commission","tag-taiwan"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2024\/10\/croc_1728050343155.jpeg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/95665","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/43"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=95665"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/95665\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/95666"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=95665"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=95665"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=95665"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}