Taiwan has expedited implementing its new Anti-Money Laundering (AML) regulations for cryptocurrency businesses in response to the imposition of fines on two crypto exchanges for violations.
The Financial Supervisory Commission (FSC) announced on Nov. 27 that the impending money laundering prevention registration mandate for crypto exchanges has been postponed from the previous deadline of Jan. 1, 2025, to Nov. 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 includes previously registered crypto businesses
Twenty-six crypto providers are authorized to continue providing their services, as indicated by Taiwan FSC records. Regardless of their prior registration status, crypto entities must register per the new AML mandate. The authority stated:
“No business operators have completed the Money Laundering Prevention Registration under the VASP Registration Measures.”
The authority has provided an inventory of items that crypto exchanges can use to monitor suspicious transactions or activities. 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 utilizing multiple accounts with the same IP address, splitting funds, and switching assets.
Crackdown on crypto exchanges that violate AML regulations
According to a Regulation Asia report, 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.
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 must implement a quality management system for accounting and auditing their finances.
