According to the latest announcement issued by the Financial Supervisory Commission, the regulatory agency previewed the draft specifications and requirements for the "Money Laundering Prevention Registration Measures for Enterprises or Personnel Providing Virtual Asset Services", as well as the "Virtual Currency Platforms and Trading Business Enterprises to Prevent Money Laundering and Combat Financing Terrorism" Amendments and implementation details of relevant laws and regulations.
Draft VASP Registration Measures
The draft VASP registration method contains the following four key points:
(1) Business categories and branch registration system of virtual asset service providers: Virtual asset service providers should handle money laundering separately according to the business categories they operate, including virtual asset exchangers, trading platforms, transfer providers, custodians and underwriters Prevention registration (Articles 2 and 3).
(2) Conditions and procedures for registration: The registration regulations stipulate in detail the qualifications for registration, required documents, application procedures, and relevant procedures for registration change, cancellation or abolition.
(3) Industry management: Virtual asset service providers need to comply with a series of management regulations, including information system security, customer complaint handling, announcement disclosure and record keeping, etc. In addition, the Financial Supervisory Commission has also proposed specific matters that should be followed for different types of virtual asset service providers.
(4) Transitional provisions: VASPs that have completed the Money Laundering Prevention Legal Compliance Statement shall register with the Financial Supervisory Commission within 3 months after the registration system takes effect, and complete the registration within 9 months after these measures take effect (Article 30).
It should be emphasized that after the VASP registration system takes effect, the current legal compliance statement system will be abolished simultaneously. Regardless of whether the business has completed the legal compliance statement, it should be registered in accordance with the VASP registration regulations. As audit regulations become more stringent, existing players may face huge challenges in passing the new registration system.
Draft amendment to VASP cleaning and prevention measures
Regarding the modification of VASP cleaning and prevention methods, the key points of the modification include the following five items:
(1) In conjunction with the amendment to the terminology of the Money Laundering Prevention Law, the name of the VASP laundering prevention measures is revised to "Measures for Preventing Money Laundering and Combating Terrorism Financing by Enterprises or Personnel Providing Virtual Asset Services", and relevant provisions are amended (Amended Articles 2 to 17 strip).
(2) In response to Article 6, Item 1 of the Amendment to the Money Laundering Prevention Law, a registration system for virtual asset service providers has been established, and it is clearly stipulated that the applicable objects of these measures are those who have completed registration in accordance with the VASP registration regulations. (Amendment Article 2)
(3) Modify that virtual asset service providers should prepare a risk assessment report and submit it to the Association every year. (Amended Article 14)
(4) It is added that virtual asset service providers should establish internal control and audit systems in accordance with the Money Laundering Prevention Law, the Terrorism Financing Prevention Law, the VASP Registration Measures and the self-discipline regulations of the Virtual Currency Business Association. (Amended Article 15)
(5) Delete the requirement that virtual asset service providers should comply with the Money Laundering Prevention Act Compliance Statement. (Amended Article 17)
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