Taiwan has enacted anti-money laundering regulations for cryptocurrency exchanges effective July 1
Amid government warnings and tight scrutiny of digital assets, Taiwan is poised to introduce new regulations that could raise anti-money laundering requirements for cryptocurrency exchanges operating on the island.
Taiwan financial watchdog sets to introduce new AML regulations for crypto exchanges
New Taiwan’s regulations will scrutinize their crypto industry more closely – but the rules will also provide clarity and can certainly make Taiwan a more popular destination for them. Future crypto startups, experts said.
According to the Taiwan Financial Supervisory Commission (FSC), the new regulations, which will take effect on July 1, will classify crypto exchanges and other platforms that operate the security token service. Secret organizations are organizations covered by the Money Laundering Control Act (MLCA).
Exchanges in Taiwan will be required to report transactions worth over $ 17,800 made in cash, and they will also need to meet your customer requirements (KYC) to ensure verification. the real identity of their customers.
FSC’s move comes after Executive Yuan, Taiwan’s highest administrative body, announced earlier this month that crypto exchanges and exchanges will comply with the rules in the definition of MLCA on “virtual money platform”. It then instructs FSC to set up related rules.
Overall, the MLCA’s requirements are consistent with guidance issued by the Financial Action Task Force (FATF), an independent governmental agency that develops an anti-money laundering policy.
Greater government scrutiny of cryptocurrency in Taiwan does not come as a surprise for those in the know. The new rules, however, will not significantly affect the operation of major exchanges in Taiwan, because many of them already have in place well-rounded anti-money laundering mechanisms.
Taiwan’s regulatory shift offers a signal that Taiwan is ready to work with exchanges from around the world. However, there are concerns about how Taiwanese authorities would extend such governance to foreign exchanges.
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