Taiwan has intensified its control over the anti-money laundering (AML) registration process for cryptocurrency exchanges, while imposing strict fines of up to 155,900 USD for violations.
On November 27, the Financial Supervisory Commission (FSC) announced it would shorten the AML registration period for virtual asset service providers (VASP), with a deadline of November 30, instead of January 1, 2025, as originally planned. This regulation applies to all VASPs, including those that have previously registered. According to the FSC announcement, currently no VASP has completed the AML registration under the new process.
This decision was made after the FSC penalized two exchanges, MaiCoin and BitoPro, for violating AML regulations related to customer verification, transaction monitoring, and reporting suspicious transactions. VASPs that do not register may face imprisonment of up to two years or a maximum fine of 5 million New Taiwan dollars (approximately 155,900 USD).
The FSC also announced a list of 26 VASPs permitted to continue operations; however, all must comply with the new AML regulations. Specifically, exchanges need to submit a registration form, notify any operational changes within 5 working days to the OTC Securities Trading Center, and establish a quality management system for accounting and financial auditing.
To support exchanges, the FSC has provided a list of suspicious trading signals to monitor, including bank account information, IP addresses, the use of multiple trading accounts, frequent changes of information, and behaviors such as splitting funds and using multiple accounts with the same IP address. The aim of this monitoring is to prevent money laundering activities and illegal financial behaviors.
This move by the Taiwanese government reflects its commitment to strengthening the management of the cryptocurrency industry, protecting investors, and preventing illegal financial activities. The tightening of AML regulations is expected to create a more transparent and safer operating environment for the cryptocurrency market in Taiwan, while also promoting the sustainable development of this industry.