In order to guard against the increasingly rampant fraud and money laundering, the Financial Supervisory Commission (FSC) has recently issued a letter requiring financial institutions to establish four enhanced identity verification and anti-money laundering thresholds for virtual asset service providers (VASPs). Additionally, the FSC also established the 'Financial Market Development and Innovation Division' today. During the inauguration ceremony, FSC Chairman Peng Jinlong stated that the Innovation Division highlights the three core values of 'proactivity,' 'innovation,' and 'development.' (Background: Taiwan's FSC opens 'financial industry custody of Bitcoin': 5 banks have expressed interest, applications will be accepted starting New Year's Day next year) (Supplementary background: Combating fraud) The online 'advertising real-name system' will be implemented on New Year's Day next year, and the FSC stated that the VASP registration system will be in place by the end of the year.) Against the backdrop of the continued prosperity of cryptocurrency trading, global regulation of the crypto industry is becoming increasingly refined, and Taiwan is keeping pace with the times by releasing many relevant laws, including the 'new regulations for anti-money laundering for virtual asset services' that will take effect at the end of November. Moreover, to strengthen the prevention of rampant virtual currency fraud, the FSC has recently implemented strict measures requiring VASPs to enhance customer identity verification. Furthermore, with the FSC's 2025 financial inspection focus including a project on VASPs, it indicates that the financial transaction anti-money laundering measures for VASPs will become stricter. Extended reading: Personal cryptocurrency merchants' doomsday) Taiwan's new anti-money laundering regulations will take effect on 11/30, and unregistered entities cannot provide virtual asset services. The FSC's four thresholds for anti-money laundering. According to reports from Sanli News, the FSC has recently issued a letter requiring financial institutions to establish four thresholds for VASPs, including: First, confirming customer identity, primarily when establishing business relationships, including whether customers of asset service providers have completed anti-money laundering registration in accordance with the Anti-Money Laundering Act. If a customer refuses to provide identity verification documents or if their business model involves illegal activities, the establishment of a business relationship should be politely declined. Additionally, it must be ensured that when a VASP's customers trade virtual assets, the related financial transactions must be conducted through accounts in the same name as the customers. Second, continuous review of existing customers' identities. Third, referring to self-regulatory norms set by the Bankers Association, establishing relevant transaction monitoring patterns to clarify whether there are abnormal accounts involved in money laundering, terrorist financing, or fraud, and reporting to the Ministry of Justice's Investigation Bureau or police agencies. Fourth, if it is found that a VASP is suspected of engaging in securities, derivative financial products, accepting deposits, domestic and foreign currency exchange, or violating anti-money laundering laws, it should be reported to judicial investigation authorities due to criminal liability. However, it is important to note that the current definition of 'money laundering' in the crypto space is still unclear, which may confuse cryptocurrency users. In this regard, an anonymous crypto operator indicated to Dong District: Using DeFi to buy meme coins and many crypto communities exchanging virtual currencies as gifts during holidays, do these count as money laundering? Bank operators cannot determine, they can only say that without registration, there is a misjudgment, which is essentially due to incomplete regulations. Taiwan's FSC unveils the 'Innovation Division.' On the other hand, according to reports from United News Network, the FSC established the 'Financial Market Development and Innovation Division' today (31st) as a dedicated unit to promote innovation and development in the financial industry, appointing Hu Zehua as the director. In the future, this division will be responsible for 'financial technology and innovation,' 'green and transformation finance,' and 'financial market development.' At the inauguration ceremony, FSC Chairman Peng Jinlong mentioned that the Innovation Division highlights the three core values of 'proactivity,' 'innovation,' and 'development,' and stated that in the future, the Innovation Division will act as a 'watchman' role to let Taiwan see more possibilities for development: In the future, the Innovation Division will also proactively seek tasks, including those that others have not thought of, or many people have thought of but have not started, or things that others want to do but have not done well yet. He further pointed out that the scale and scope will be expanded; the former refers to what has already been approved, which will be made larger, and the latter refers to what has not yet been opened, to see if the range can be increased further. He also hopes that the Innovation Division can better fulfill its role as a 'watchman' in the future. The FSC stated that the Innovation Division will have four sections, each responsible for the following tasks: First Section (Financial Innovation Section 1): Establish a single window to coordinate consultation, assessment, and actual case handling for financial technology projects; formulate and publish relevant regulations, guidelines, and key points for financial innovation development; promote international exchanges related to financial technology and collect and analyze trends, etc. Second Section (Financial Innovation Section 2): Manage innovation parks; supervise large domestic innovation field exhibitions and forums; plan and execute ecosystem collaboration matters; plan financial technology project subsidies and selection assessments; plan the overseas export of new domestic technologies, funding, and collaboration projects; plan talent cultivation for financial technology and regulatory technology, etc. Third Section (Green Finance Section): Plan and execute and oversee green and transformation finance action plans; collect and analyze trends related to net zero and transformation issues; promote the net zero work platform for pioneers; expand international exchanges and professional output in green and transformation finance; plan domestic advocacy and training, etc. Fourth Section (Financial Development Section): Collect international financial market development-related measures, evaluate the feasibility and methods for promoting in our country; conduct sustainable finance evaluations, improve sustainable finance certification; analyze and compile policies for the Asia Asset Management Center and oversee the progress and results; coordinate with relevant ministries and agencies to facilitate development-related cases, etc. Related reports: Financial technology associations from 14 Asian countries sign 'Anti-Fraud Cross-Border Joint Defense MOU,' FSC and Ministry of Justice welcome its success. The FSC confirms: VASP registration system will be launched earlier in December this year! Ge Rujun worries that operators may be caught off guard. MaiCoin and BitoEx exchanges were each fined NT$1.5 million by the FSC for violating anti-money laundering regulations. "Taiwan's FSC warns cryptocurrency users: Anyone found laundering money will be arrested! Requires VASPs to tighten controls; on the same day, the 'Financial Market Innovation Division' was inaugurated." This article was first published in Dong District BlockTempo (Dong District Trend - the most influential blockchain news media).