The Financial Supervisory Commission (FSC) of Taiwan has moved up the implementation date for its crypto anti-money laundering (AML) regulations, which will now take effect on November 30 instead of the previously planned December. The new regulations require crypto service providers to complete AML compliance registration, with non-compliance potentially resulting in fines and up to two years in prison.
Overseas virtual asset service providers (VASPs) must also establish a company or branch office in Taiwan to operate within the country. The FSC has also emphasized the importance of having a comprehensive AML program that includes aspects such as custody of fiat currency, information security, customer complaint handling procedures, record-keeping, and information disclosure.
Kevin Cheng, a crypto lawyer and Secretary General of the Taiwan Fintech Association, noted that the new law imposes stricter regulatory oversight for existing VASPs and that companies now need to comply with additional requirements beyond AML measures, including administrative reporting, information security, and consumer protection.
The new regulations follow recent FSC investigations that led to fines totaling NT$1.5 million for two crypto exchanges, MaiCoin and BitoPro, due to AML violations. The FSC alleged that the exchanges had failed to enhance customer due diligence, lacked sufficient understanding of clients’ sources of wealth, maintained inadequate transaction data records, and were unable to effectively detect suspicious transaction patterns.
Both exchanges have agreed to address the regulatory shortcomings identified by the FSC.
Source
<p>The post Taiwan Moves Up Crypto AML Regulations to Strengthen Fraud Prevention Measures first appeared on CoinBuzzFeed.</p>