Taiwan Tightens AML Regulations for Virtual Asset Providers
On July 16, Taiwan’s parliament approved revisions to its anti-money laundering (AML) regulations, mandating crypto providers in the country to register for AML compliance. Failure to comply may result in severe penalties, including up to two years in prison or fines of up to NT$5 million (approximately $153,817).
As reported by a local news outlet, the new legislation requires entities providing crypto services in Taiwan to complete their AML procedures and register fully to become virtual asset providers (VASPs).
Taiwan's new laws require businesses or individuals providing virtual asset or third-party payment services to follow anti-money laundering rules and register their service capabilities.
Non-compliance may result in up to two years' imprisonment or a fine of NT$5 million.
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The amendments also cover domestic and foreign currency dealer regulations and special money laundering crimes.
Specific categories have been established for money laundering involving virtual asset accounts and third-party payment accounts. Defaulting crypto service providers in these categories face prison sentences from 6 months to 5 years and fines up to NT$50 million.
Under the new amendments, overseas crypto platforms must establish local entities and apply for AML registration to avoid criminal penalties.
Since 2021, the Financial Supervisory Commission (FSC) has mandated compliance with AML laws for crypto service providers in Taiwan. This regulatory effort aims to ensure strict adherence to laws, maintaining regulatory stability in the crypto market.
Also in March, the FSC revealed plans to propose a new draft of digital asset regulations in September 2024. The draft bill will create effective
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