Taiwan Strengthens Anti-Money Laundering Regulations for Crypto Firms

The Financial Supervisory Commission (FSC) of Taiwan has introduced “new anti-money laundering (AML) regulations” for virtual asset service providers (VASPs). According to these regulations, they need to finalize their “AML compliance registration” by September 2025.

VASPs have time to prepare and comply with these obligations as rules will officially be implemented from 1st January 2025 in Taiwan.

Penalties for Non-Compliance

According to a press release of FSC, noncompliance with updated AML registration requirements will lead to severe penalties for VASPs such as

• Upto two years in prison
• Fines upto NT$5 million (about $155,900)

New Regulations for VASP Registration

The new regulations were proposed in July based on recent changes in Taiwan’s financial legislation.

All VASPs have to follow new AML legislation for the latest registration requirements, irrespective of the fact that all these VAPS had been fully  compliant with previous rules,

This represents a major change from the last “AML obligations” that were announced in June 2021.

Suggested Article: Everything You Need To Know About AML Crypto

Kevin Cheng Warns Non-Compliant VASPs

A crypto attorney and a Taiwan Fintech Association’s  general  secretary, Kevin Cheng, highlighted that “non-compliant operators will face criminal liability.”

He also mentioned that VASPs that are already following AML regulations must comply with new requirements that will make the crypto industry operate in the same manner as officially registered financial institutions do.

Read Also:

• Washington Man Faces Charges in $64 Million Crypto Laundering Scheme
• China To Recognize “Virtual Asset Transactions” As A Method Of Money Laundering
• UK FCA Rejects 90% of Crypto Firms for AML Compliance Failures

Important Updates on the New Regulations

• VASP management teams must fulfill the requirements of new rules announced in the updated regulations.
• Corporate obligations  include “transaction security and consumer asset protection.”
• The Financial Supervisory Commission (FSC) is working on a particular law related to crypto assets, and the draft is expected to be presented to the Executive Yuan of Taiwan in June 2025.
• By the end of the year, the draft proposal will be expected to be finished for submission.

Taiwan Tightens Crypto AML Rules for Industry Security

In June, a group of local crypto companies formed their industry association following government instructions for self-analyzing their efforts.

According to the press release from Taiwan’s Financial Supervisory Commission (FSC), the new AML regulations are designed to enhance the security of the crypto industry in Taiwan.

These regulations establish AML laws and rules for the crypto sector that are equivalent to those for financial institutions. As a result, many clients are drawn to this field, just as they are drawn to financial institutions, due to their safety and transparency.