Kevin

Taiwan Financial Supervisory Commission (FSC) has <a href="https://www.sfb.gov.tw/ch/home.jsp?id=1054&amp;parentpath=0,8,1053" rel="noopener noreferrer nofollow">announced</a> that its new anti-money laundering (AML) rules for crypto service providers will take effect on November 30, a month earlier than initially planned. The move underscores the regulator’s commitment to combating fraud and enhancing financial security.
The revised regulations require virtual asset service providers (VASPs), including crypto exchanges, to <a href="https://thecoinrise.com/taiwan-introduces-stricter-crypto-regulations-with-new-aml-requirements/" rel="noopener noreferrer nofollow">complete AML compliance registration</a>. Non-compliance could result in severe penalties, including imprisonment of up to two years and fines as high as NT$5 million ($153,700). Additionally, overseas VASPs must establish a local company or branch under Taiwan’s Company Act before conducting business within the country.
These measures build upon legal amendments introduced in July, signaling Taiwan’s intent to tighten its grip on the rapidly evolving crypto sector.
<h2 id="span-style-font-weight-400-taiwan-strengthening-oversight-to-prevent-fraud-span">Taiwan Strengthening Oversight to Prevent Fraud</h2>
Jin-Lung Peng, chair of the FSC, stated during an October parliamentary session that accelerating the AML framework addresses growing societal demands for robust fraud prevention mechanisms. The VASP registration system is part of a larger legislative effort aimed at curbing fraudulent activities in the financial sector.
Hsi-Ho Huang, director of the FSC’s securities firms division, highlighted key areas of focus under the new rules. These include tighter scrutiny of fiat custody, information security, complaint handling, record-keeping, and data transparency. Crypto trading platforms are also mandated to establish clear procedures for listing and delisting assets, while implementing safeguards against unfair trading and abnormal market activity.
“The new regulations impose stricter oversight on existing VASPs,” explained Kevin Cheng, a crypto lawyer and secretary general of the Taiwan Fintech Association. “Beyond AML measures, companies must also fulfill administrative, security, and consumer protection obligations.”
Cheng further noted that the strengthened rules equip law enforcement with more effective tools to tackle complex criminal activities within the crypto space.
<h2 id="span-style-font-weight-400-crackdown-on-non-compliance-span">Crackdown on Non-Compliance</h2>
Ahead of the new rules’ implementation, Taiwan has already acted against non-compliant firms. Local exchanges MaiCoin and BitoPro were recently fined NT$1.5 million each for AML violations. These also included inadequate customer due diligence, insufficient tracking of transaction sources, poor record-keeping, and failure to identify suspicious trading patterns.
As <a href="https://thecoinrise.com/taiwan-unveils-new-crypto-regulations-set-for-2025-launch/" rel="noopener noreferrer nofollow">Taiwan ramps up its regulatory efforts</a>, the FSC’s proactive <a href="https://www.fsc.gov.tw/ch/home.jsp?id=2&amp;parentpath=0&amp;mcustomize=news_view.jsp&amp;dataserno=202411260005&amp;dtable=News" rel="noopener noreferrer nofollow">stance</a> sets a benchmark for addressing the challenges of fraud and money laundering in the crypto industry. By enforcing these measures, the regulator aims to create a safer and more transparent environment for digital asset transactions.
The post <a href="https://thecoinrise.com/taiwan-accelerates-crypto-anti-money-laundering-rules-ahead-of-schedule/" rel="noopener noreferrer nofollow">Taiwan Accelerates Crypto Anti-Money Laundering Rules Ahead of Schedule</a> appeared first on <a href="https://thecoinrise.com/" rel="noopener noreferrer nofollow">TheCoinrise.com</a>.

Taiwan Accelerates Crypto Anti-Money Laundering Rules Ahead of Schedule

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