Taiwan’s Financial Supervisory Commission (FSC) announced updated Anti-Money Laundering (AML) regulations on October 2. 🎉 These new rules aim to increase oversight of local virtual asset service providers (VASPs). Those who fail to comply will face heavy penalties. The new regulations will come into effect on January 1, 2025, and require all crypto firms to register with the Taiwanese government by September 2025.

Failure to comply will result in a prison sentence of up to two years or a fine of 5 million New Taiwan dollars (approximately $155,900). The regulator, which has been preparing for these changes since March, is now requiring VASPs to submit annual risk assessment reports. It is also advising them to delay submitting documents until the new registration system is in place.

The FSC plans to propose new laws for digital assets, with a draft expected by the end of 2024. Meanwhile, foreign virtual asset exchange-traded funds (ETFs) have been allowed for professional investors. However, due to the high investment risks, only institutional investors and high-net-worth individuals will be able to access these funds. 📊

These regulations are part of Taiwan’s comprehensive strategy to keep the crypto market safe and compliant.