Taiwan Implements Jail Sentences for AML Violations in Crypto Sector
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Taiwan is increasing its strictness towards crypto service providers who do not comply with anti-money laundering (AML) regulations. The Ministry of Justice is proposing amendments that could result in fines of up to $1.5 million and 5 years of imprisonment for companies that fail to adhere to the rules.
The suggested changes aim to reduce fraudulent activities, money laundering, and cybercrime. A key aspect is the introduction of a registration requirement for crime prevention against money launderers for VASPs. Failure to comply may lead to criminal charges.
This move comes amidst growing concerns about crypto-related fraud and money laundering allegations. Taiwan’s Financial Supervisory Commission (FSC) has announced their plans to regulate the digital currency industry by September 2024.
Taiwan’s legislation to punish money laundering by crypto firms through criminal procedures represents a significant step towards stricter regulation in the sector. While this may establish a trusted crypto environment and attract more investments, it is important that the regulations are balanced and not overly restrictive to stifle innovation.
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