On November 27, the Financial Supervisory Commission (FSC) brought forward the registration deadline for crypto exchanges, moving it from January 1, 2025, to November 30, 2024.
Under the new regulations, virtual asset service providers (VASPs) that fail to register with the government could face penalties including fines of up to approximately USD 155,900 or a two-year prison sentence.
The updated mandate affects both new and previously registered crypto businesses. According to FSC records, 26 crypto providers are currently approved to operate under existing regulations, but all entities – regardless of prior registration – must now comply with the new AML requirements. The FSC has noted that no businesses have yet completed the mandatory Money Laundering Prevention Registration.
To help identify suspicious activities, the FSC has issued guidelines for crypto exchanges, including monitoring for unusual customer behaviour such as discrepancies in personal information, IP address tracking, and multiple trading accounts.As part of its enforcement efforts, the FSC recently fined two local exchanges, MaiCoin and BitoPro, for non-compliance with AML standards, including issues related to customer due diligence, transaction monitoring, and record-keeping.
Crypto service providers must submit a one-page form outlining their business operations to comply with the new registration requirement. Any changes to the provided information must be reported within five business days to the Securities Over-the-counter (OTC) Trading Center. Additionally, businesses are required to establish a quality management system for financial auditing and accounting practices.
Recent enforcement actions against two prominent cryptocurrency exchanges, MaiCoin and BitoPro, underscore Taiwan's commitment to upholding its newly introduced AML regulations. The fines imposed on both exchanges serve as a clear message to other VASPs operating in Taiwan, emphasising the importance of strict compliance with the country's financial laws. These actions are part of Taiwan's broader strategy to ensure a secure and well-regulated environment for digital assets, fostering a marketplace that operates transparently while safeguarding against financial crimes such as money laundering and fraud. The authorities' proactive stance reflects their determination to establish Taiwan as a trustworthy hub for blockchain and cryptocurrency businesses.
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