The Financial Supervisory Commission (FSC) of Taiwan has introduced new Anti-Money Laundering (AML) regulations that all local virtual asset service providers (VASPs) must comply with by 2025.
On Oct. 2, the FSC released updated AML measures following earlier amendments proposed by the financial watchdog. Taiwan has been expected to roll out new crypto-related regulations since March.
Cracking down on crypto
The new regulations require all crypto firms to register with the government by September 2025 or face penalties, including a two-year prison sentence or fines of up to 5 million New Taiwan dollars ($155,900).
The regulations, effective Jan. 1, 2025, will replace the current system for Taiwanese VASPs. Even if companies have completed the old AML compliance measures in the past, they are still expected to meet the new standards and registration process.
Regulations in the crypto industry (video). Source: Cointelegraph
The FSC advised VASPs to consider waiting until the new registration system is implemented before submitting their documents to avoid reapplying under different rules.
VASPs are also expected to prepare a risk assessment report and submit it to the respective government agency each year as a part of the new compliance measures.
The FSC is expected to submit a new proposal for crypto-related laws by June 2025, with a draft anticipated by the end of this year.
Cointelegraph has contacted the FSC for additional information on its upcoming AML laws. Cointelegraph has also contacted local Taiwanese law firms to understand the impact of these laws on the local crypto community.
Taiwan crypto moves
In addition to its new AML regulations, the Taiwanese government has been expanding its involvement in the crypto sector.
On Sept. 30, the FSC opened the digital asset ETF market to local professional investors. The financial regulator allowed access to high-risk foreign digital asset exchange-traded funds (ETFs).
This move aims to boost Taiwan’s financial market competitiveness and aligns with similar efforts in Hong Kong and Singapore.
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