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Taiwan’s Financial Supervisory Commission (FSC) will introduce new anti-money laundering (AML) rules for the crypto industry. These new rules will start on November 30, which is earlier than expected, according to The Block.
The new rules say that cryptocurrency companies that help people in Taiwan must sign up for anti-money laundering (AML) checks. If they don’t sign up or follow the rules, they could face up to two years in jail or pay huge fines of 5 million New Taiwan dollars (about $154,000).
Companies Already Following Current Rules Must Meet The New Standards
The Taiwanese regulator had earlier said these rules would start on January 1, 2025. But now, they will start a month earlier, and no reason was given for the change.
Under these new rules, any company that works with digital assets in Taiwan must open a local office or branch in Taiwan and sign up for AML checks before beginning operations. Even companies that already follow the current rules must follow these new ones. The FSC had earlier told companies to wait until the new system was ready before submitting documents to avoid doing the same work twice.
Kevin Cheng, a crypto lawyer and Secretary General of the Taiwan Fintech Association, said the new law means there will be more rules for companies already in business. He added that companies must now follow more rules about reporting, protecting information, and keeping customers safe.
These changes were made quickly because more people are asking for better protection from fraud. Jin-Lung Peng, the head of the FSC, said the new rules will help keep customers safe, make the market safer, and encourage more people to use cryptocurrency.
In the UK, 87% of cryptocurrency companies failed to meet money-laundering rules in a recent review.
The New Rules Require Companies To Send A Yearly Risk Report To The Government
Taiwan’s new rules also say companies must send a yearly risk report to the government. The FSC plans to create new laws for cryptocurrency by June 2025, with a draft ready by the end of 2024.
The New Rules Could Help More People Trust Cryptocurrency And Grow The Market
Recently, Taiwan fined two cryptocurrency exchanges, BitoPro and MaiCoin 1.5 million New Taiwan dollars (around $46,200) each for not following AML rules.
The FSC said the exchanges didn’t check their customers properly or understand where their customers’ money came from. They also failed to record transactions properly or notice suspicious activity. The exchanges admitted the problems and promised to fix them.
Taiwan is working to make its rules stronger as the global cryptocurrency market grows, and Bitcoin might reach $100, 000 by the end of the year. Countries such as Russia, Singapore, and Hong Kong are also working to use more cryptocurrency before it’s too late.
With a strong crypto market already in Taiwan, these new rules could help more people trust cryptocurrency and help the market grow even more.
