Taiwan’s Financial Supervisory Commission (FSC) is set to implement new anti-money laundering (AML) regulations for cryptocurrency service providers from November 30th. The new rules require crypto exchanges and virtual asset service providers (VASPs) to register for AML compliance, with the deadline initially set for January 1st, 2025, but moved up by a month.

Overseas entities offering virtual asset services in Taiwan must establish a local presence and complete the AML registration process under the Company Law. To aid in compliance, the FSC issued a checklist to help platforms identify suspicious activities. They are required to monitor customer details such as names, bank account information, IP locations, and account usage patterns.

Additionally, they must look for unusual transaction activities like frequent changes to account information, splitting funds, and using multiple accounts from the same IP address. Non-compliance could result in severe penalties including fines of up to NT$5 million ($153,700) and imprisonment for as long as two years.

This regulatory push follows the FSC’s decision to penalize two local exchanges – MaiCoin and BitoPro – for multiple violations. On Monday both exchanges were fined NT$1.5 million each for non-compliance with AML regulations. According to the agency, these crypto firms did not improve customer due diligence or keep adequate transaction records and failed to identify suspicious transaction patterns effectively.

Taiwan has been actively advancing cryptocurrency regulations as part of its strategy to position itself as a global leader in digital assets space. In September last year, the FSC introduced ten guiding principles for VASPs creating self-regulatory frameworks designed to enhance transparency through improved information disclosure establish clear standards listing delisting virtual assets ensure proper separation custody client company funds more recently revealed plans introduce registration system requiring cryptocurrency exchanges register Taiwanese government September 2025 While government tightened oversight introducing measures encourage growth sector last month Financial watchdog granted professional investors access exchange-traded funds ETFs linked foreign digital assets Additionally regulator preparing pilot program institutional cryptocurrency custody applications set open early 2025 Three private banks already expressed interest participating initiative

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<p>The post Taiwan Cracks Down on Crypto Exchanges: AML Regulations Enforced! first appeared on CoinBuzzFeed.</p>