Taiwan FSC Rolls Out Fresh AML Rules for Crypto Companies
The Taiwanese Financial Supervisory Commission has taken major steps to regulate the cryptocurrency industry with the announcement of new anti-money laundering rules. A suite of regulations is expected to target specifically virtual asset service providers, which will be effective starting from January 1, 2025.
Compliance Requirements
Under the newly designed ‘VASP Registration Regulations,’ crypto businesses operating exchanges and custodians would have to follow strict AML practices: instead, filing annual risk assessment reports and establishing proper internal control and audit systems. Failure to now do so may result in severe penalties including imprisonment and hefty fines.
Penalties for Non-Compliance
Businesses already compliant under them existing AML laws are expected to file their registration in the new system no later than March 2025. New entrants in the market have up to September 30, 2025, to complete the registration. Non-compliant firms might be sentenced to as long as two years in prison plus fines of up to NT$5 million, which is approximately $156,140.
Future Regulations in Pipeline
Besides this, the FSC is also working on a wider “special law” concerning virtual assets, which is supposed to be ready by the end of December 2024. Such a law would contain issues such as capital standards and personnel qualification beyond these proposals and would create a complete regulatory architecture for Taiwan’s crypto market in its making.
Strengthening Taiwan’s Position in Global Crypto Markets
The latest measures by the FSC are part of a broader Taiwanese effort to put it in step with global markets embracing digital asset investment. In recent months, Taiwan has relaxed access for professional investors to crypto exchange-traded funds and introduced crypto-friendly banking services.
These steps signal that Taiwan is committed to seeing that there is a regulated, compliant and safe environment for the businesses of cryptocurrency and investors.
