The Financial Supervisory Commission announced yesterday that the Anti-Money Laundering Act, Article 6, will take effect on November 30. At that time, exchanges and individual cryptocurrency traders that have not completed their registration under the Anti-Money Laundering Act will not be allowed to provide virtual asset services. If they provide services without legal registration, they will face criminal liability of up to 2 years and fines of up to 5 million. (Background: The Executive Yuan passed the 'New Four Laws against Fraud': Overseas exchanges and individual traders must register; penalties and fines have been announced) (Background Supplement: The amendment to the Anti-Money Laundering Act passed its third reading: Overseas exchanges and virtual currency traders must register; violators face up to 2 years in prison and fines of 5 million) The Legislative Yuan of Taiwan passed the 'Anti-Money Laundering Act Amendment Draft' on July 16 and officially published the announcement on July 31, with effect from August 3. One key point of the amendment is to 'strengthen the regulation of virtual asset services and strictly prevent money laundering through virtual assets.' The newly added Article 6 formally includes 'virtual asset services' into the formal regulations, attracting attention from the cryptocurrency industry in Taiwan and overseas. The Anti-Money Laundering Act, Article 6, will take effect on November 30. Against this background, the Financial Supervisory Commission announced an update yesterday (27th) that Article 6 of the Anti-Money Laundering Act will take effect on November 30: Article 6 of the Anti-Money Laundering Act, published on July 31 of the 113th year, will take effect on November 30 of the 113th year. According to the above provisions, businesses or individuals providing virtual asset services who have not completed money laundering prevention registration with the central competent authority shall not provide virtual asset services. Businesses or individuals established overseas providing virtual asset services must complete company or branch registration in accordance with the Company Act, as well as complete money laundering prevention registration, and shall not provide virtual asset services within our country. Violators will face criminal liability of up to 2 years. It is important to note that whether you are an exchange or an individual trader, you must complete money laundering prevention registration with the competent authority. If you do not register as required and provide virtual asset services after November 30, you will violate criminal law, which may result in imprisonment for up to 2 years, detention, or fines of up to 5 million. Corporations may face fines of up to ten times. The definition of 'providing virtual asset services' is unclear, raising the possibility of legal disputes. It is worth noting that some members of the community have expressed concerns that the definition of 'providing virtual asset services' in the Anti-Money Laundering Act amendment is not clear, which may lead to erroneous judgments and chaos. For example, if someone helps a friend manage or trade cryptocurrencies, does that count as a type of 'virtual asset service'? If a dispute arises between the two parties, could the other party report that they did not register for money laundering prevention, leading a judge to rule them guilty under the Anti-Money Laundering Act? In response to these concerns, an anonymous cryptocurrency operator commented: Legislators do not understand that the ultimate purpose of cryptocurrency is to lower financial barriers, allowing everyone to use unrestricted financial services. Such legislation instead restricts the use of cryptocurrency and does not enable the government to control all cryptocurrency services, which may only lead to more underground trading. Definition of businesses or individuals providing virtual asset services According to the latest announcement by the Financial Supervisory Commission under Article 6, Section 2 of the Anti-Money Laundering Act, businesses or individuals providing virtual asset services are defined as those who engage in the following activities for others within our country: Exchanging virtual assets with New Taiwan Dollars, foreign currencies, and currencies issued in mainland China, Hong Kong, or Macau. Exchanging between virtual assets. Transferring virtual assets. Custody and management of virtual assets or providing related management tools. Participating in and providing financial services related to the issuance or sale of virtual assets. Will Taiwan ease regulatory standards in the future? On the other hand, after Trump's election as President of the United States, many countries and businesses began to change their previously conservative attitudes towards cryptocurrencies and Bitcoin, leading to increasing acceptance of cryptocurrencies internationally. However, under the current rapidly changing circumstances, Taiwan's regulation of cryptocurrencies appears somewhat conservative. For example, in the United States, there are no specific anti-money laundering registration laws for individual traders. Perhaps in the future, Taiwan will draw on foreign experiences to relax cryptocurrency regulation, but for now, it must adhere to the Anti-Money Laundering Act, Article 6, which will take effect on November 30. Related Reports The Financial Supervisory Commission confirms: VASP registration system will be implemented in early December this year! Ge Ru-jun worries that businesses may be caught off guard. Taiwan's cryptocurrency regulation enters the fast lane) Can VASP self-regulation become the key to breaking the deadlock? What are the advantages and risks? Taiwan's Anti-Money Laundering Act amendment announcement: Cryptocurrency exchanges' 'dummy accounts' may be locked! 'The end of individual traders' The new Anti-Money Laundering regulations in Taiwan will take effect on November 30, and those who do not register will not be allowed to provide virtual asset services. This article was first published on BlockTempo (the most influential blockchain news media).