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Taiwan advanced the introduction of its new Anti-Money Laundering (AML) regulations for cryptocurrency businesses after authorities fined two crypto exchanges for violations.
On Nov. 27, the Financial Supervisory Commission (FSC) <a data-ct-non-breakable="null" href="https://www.sfb.gov.tw/ch/home.jsp?id=1054&amp;parentpath=0,8,1053" rel="null" target="null" text="null" title="null">announced</a> that the upcoming money laundering prevention registration mandate for crypto exchanges was shifted to Nov. 30 from the previous Jan. 1, 2025 deadline.
Per the previous notice, virtual asset service providers (VASPs) failing to register with the government could be <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/taiwan-s-new-aml-laws-put-crypto-firms-on-notice" rel="null" target="null" text="null" title="null">subject to a two-year prison sentence or fines</a> of as much as 5 million New Taiwan dollars ($155,900).
<h2 id="the-new-mandate-includes-previously-registered-crypto-businesses">The new mandate includes previously registered crypto businesses</h2>
<a data-ct-non-breakable="null" href="https://www.fsc.gov.tw/userfiles/file/(%E7%AC%AC7%E9%BB%9E)%E4%BE%9DVASP%E7%99%BB%E8%A8%98%E8%BE%A6%E6%B3%95%E7%AC%AC30%E6%A2%9D%E8%A6%8F%E5%AE%9A%EF%BC%8C%E4%BB%8D%E5%BE%97%E6%8F%90%E4%BE%9B%E8%99%9B%E6%93%AC%E8%B3%87%E7%94%A2%E6%9C%8D%E5%8B%99%E4%B9%8B%E6%A5%AD%E8%80%85%E5%90%8D%E5%96%AE20241127.pdf" rel="null" target="null" text="null" title="null">According</a> to Taiwan FSC records, 26 crypto providers are currently approved to continue to offer their services. All crypto entities, whether previously registered or not, must register in accordance with the new AML mandate. The authority said:
<blockquote>
 “No business operators have completed the Money Laundering Prevention Registration under the VASP Registration Measures.”
</blockquote>
The authority <a data-ct-non-breakable="null" href="https://www.fsc.gov.tw/userfiles/file/(%E7%AC%AC4%E9%BB%9E)%E7%96%91%E4%BC%BC%E6%B4%97%E9%8C%A2%E6%85%8B%E6%A8%A3%E4%BE%8B%E7%A4%BA20241127.pdf" rel="null" target="null" text="null" title="null">provided</a> a checklist of items crypto exchanges can use to track suspicious transactions or activities. When identifying suspicious customers, crypto service providers must look for names and bank account details, location via IP addresses, multiple trading accounts and frequent information changes, among other things.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/taiwan-crypto-custody-trial-banks-institutions" rel="null" target="null" text="null" title="null">Taiwan to trial crypto custody services through local banks in 2025</a>
Crypto exchanges in Taiwan were also asked to track unusual transaction activities, including but not limited to splitting funds, utilizing multiple accounts with the same IP address and switching assets.
<h2 id="cracking-down-on-crypto-exchanges-violating-aml-laws">Cracking down on crypto exchanges violating AML laws</h2>
According to a Regulation Asia <a data-ct-non-breakable="null" href="https://www.regulationasia.com/taiwan-fsc-fines-two-crypto-exchanges-for-aml-violations/" rel="null" target="null" text="null" title="null">report</a>, the FSC fined crypto exchanges MaiCoin and BitoPro on Nov. 28 for AML violations in relation to customer due diligence (CDD), transaction monitoring, record-keeping and suspicious transaction reporting.
To register with Taiwan’s AML regulation, crypto service providers are required to submit a one-page <a data-ct-non-breakable="null" href="https://view.officeapps.live.com/op/view.aspx?src=https%3A%2F%2Fwww.fsc.gov.tw%2Fuserfiles%2Ffile%2F(%25E7%25AC%25AC5%25E9%25BB%259E)VASP%25E6%25B4%2597%25E9%2598%25B2%25E7%2599%25BB%25E8%25A8%2598%25E8%25BE%25A6%25E6%25B3%2595%25E7%259B%25B8%25E9%2597%259C%25E6%259B%25B8%25E4%25BB%25B620241127.odt&amp;wdOrigin=BROWSELINK" rel="null" target="null" text="null" title="null">form</a> detailing the nature of their businesses. 
The form states that any changes to the business or the information provided should be provided to the Securities Over-the-counter (OTC) Trading Center within five business days.
Crypto businesses will also be required to establish a quality management system for accounting and auditing their finances.
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/5-incredible-uses-for-based-agents-and-nears-ai-assistant/" rel="null" target="null" text="null" title="null">5 incredible use cases for Based Agents and Near’s AI Assistant</a>

Taiwan enforces AML registration mandate for crypto providers

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