原文标题：Taiwan's FSC drafts new crypto AML rules, requiring firms to register or face jail time
Original author: Timmy Shen
Original source: https://www.theblock.co/
Compiled by: Mars Finance, Daisy
Taiwan’s Financial Supervisory Commission (FSC) will require virtual asset service providers (VASPs) to complete anti-money laundering (AML) compliance registration or face criminal penalties.
According to the FSC, the regulation will take effect on January 1, 2025, and VASPs must complete the relevant registration by September 2025.
Taiwan’s financial regulator, the Financial Supervisory Commission (FSC), has drafted new anti-money laundering regulations following a legal revision in July. These regulations require cryptocurrency companies to complete registration by the end of September next year. Failure to comply could result in penalties, including up to two years in prison.
The Financial Supervisory Commission (FSC) said in a statement on Wednesday that it has drafted regulations that explicitly target virtual asset service providers (VASPs) and require them to complete anti-money laundering (AML) registration.
Taiwan currently requires virtual asset service providers (VASPs) to comply with anti-money laundering (AML) regulations introduced by the FSC in July 2021, and these regulations will soon be replaced by new regulations. The FSC clarified in its statement on Monday that regardless of whether the provider has completed existing compliance declarations, "all providers must comply with the new VASP registration regulations and complete the registration process."
According to local media reports citing the Financial Supervisory Commission (FSC), the new regulations will take effect on January 1, 2025, and virtual asset service providers (VASPs) must complete anti-money laundering (AML) registration by the end of September. Otherwise, they may face up to two years in prison and a fine of up to NT$5 million (about US$155,900).
Kevin Cheng, a cryptocurrency lawyer and secretary-general of the Taiwan Fintech Association, told The Block that with the implementation of the new regulations, non-compliant operators will be held criminally liable, while compliant operators will face stricter regulatory obligations. Cheng noted: “The entire industry environment will gradually develop towards the model of licensed financial institutions.”
According to Cheng, in addition to traditional anti-money laundering (AML) obligations, the new regulations also require management teams to be qualified and incorporate corporate responsibilities such as transaction security, consumer asset protection and information security.
Cheng added: “For industry participants, these rules set higher entry barriers and ongoing operation requirements. The new regulations provide stronger legal protection for the development of Taiwan’s crypto industry, making it more attractive to large investors accustomed to traditional finance.”
Meanwhile, the Financial Supervisory Commission (FSC) is considering a special legal proposal for crypto assets and plans to submit it to Taiwan’s highest administrative body, the Executive Yuan, in June next year. According to local media reports, the FSC plans to complete the draft of the proposal by the end of this year.
In June this year, Taiwan’s crypto industry established an industry association to formulate self-regulatory rules under government guidance.
