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Taiwan Accelerates AML Registration for Crypto Providers
Taiwan's Financial Supervisory Commission (FSC) has announced a significant acceleration of its Anti-Money Laundering (AML) regulations for cryptocurrency providers, moving the registration deadline up to Nov. 30 from the previously scheduled Jan. 1, 2025.
This decision follows recent fines issued to two crypto exchanges for noncompliance with existing AML laws.
Currently, 26 virtual asset service providers (VASPs) are approved to operate in Taiwan, but under the new mandate, all crypto businesses, regardless of previous registration, must comply with the AML registration requirements. Failure to register could result in penalties including up to two years in prison or fines reaching 5 million New Taiwan dollars, equivalent to approximately $155,900.
The FSC has clarified that no operators have completed the required Money Laundering Prevention Registration under the VASP Registration Measures.
To assist in compliance, the FSC provided a checklist for crypto exchanges to monitor suspicious transactions and activities. Indicators such as unusual transaction patterns, multiple accounts linked to the same IP address, and frequent changes in user information must be scrutinized.
In a related enforcement action, the FSC fined MaiCoin and BitoPro on Nov. 28 for violations concerning customer due diligence, record-keeping, and suspicious transaction reporting.
As part of the new regulations, crypto service providers must submit a one-page form detailing their business operations and report any changes to their business information within five business days.