Taiwan Implements Tougher AML Rules for Cryptocurrency Companies, Requires Compliance by 2024
Taiwan’s financial regulator, the Financial Supervisory Commission (FSC), is tightening rules to prevent money laundering.
The FSC added new anti-money laundering (AML) regulations following a July amendment. The new rules require crypto companies to register with the regulator by September 2025 or face consequences for non-compliance.
New AML Regulations for VASPs in Taiwan Set to Take Effect in 2025
The FSC announced on Wednesday that it had drafted new rules focused on virtual asset service providers (VASPs). These crypto firms must register for anti-money laundering (AML) compliance.
VASPs in Taiwan already follow AML rules introduced by the FSC in July 2021, but the new ones will soon replace these regulations. The FSC clarified that even if a provider has already met the old compliance requirements, they still have to follow the new regulations and complete the registration process again.
The new regulations will officially start on January 1, 2025. All virtual asset service providers (VASPs) must finish their AML registration by the end of September next year. If they don’t comply, they could face serious consequences.
According to local news and the FSC, companies that fail to register could be fined up to NT$5 million ($155,900). Meanwhile, their leaders could face up to two years in prison.
Kevin Cheng: New Rules Will Reshape Taiwan’s Crypto Landscape
Kevin Cheng, a crypto lawyer and secretary general of the Taiwan Fintech Association, explained the impact of the new rules in simple terms. He said that once these rules are enforced, companies that don’t follow them will face criminal charges.
On the other hand, companies that comply will face stricter regulations. This isn’t just about registering for anti-money laundering (AML) rules.
Compliant operators must meet standards similar to those of traditional banks and other licensed financial institutions. In short, the entire crypto industry in Taiwan is moving toward being regulated more like the traditional finance sector.
Over time, this will likely create a more controlled and formal environment for crypto businesses since they would likely function under stricter laws like banks.
Kevin Cheng says the new regulations will include more than the usual anti-money laundering requirements. They will also set specific qualifications for crypto company management teams.
Furthermore, companies will have to take on more responsibilities. They must ensure that transactions are secure, protect consumer’s assets, and keep information safe. Kevin Chen explained that the new rules will make it harder for companies to enter and stay in the crypto business.
These higher standards mean that only companies ready to meet stricter regulations will be able to compete. However, there is a positive side. The new regulations will offer more robust legal protection for the crypto industry in Taiwan.
This creates a safer and more reliable environment, which could attract more significant investors, especially those who are used to the traditional markets.
The Financial Supervisory Commission (FSC) is considering new legislation for crypto assets. They plan to submit this law in June next year to the Executive Yuan, Taiwan’s top decision-making body. According to local reports, the FSC aims to finish drafting this law by the end of this year.
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