Taiwan Implements New Anti-Money Laundering Rules for Crypto Firms
Taiwan’s Financial Supervisory Commission (FSC) has announced new anti-money laundering (AML) regulations targeting virtual asset service providers (VASPs). These regulations, which require VASPs to complete AML compliance registration by September 2025, will take effect on January 1, 2025.
According to local media reports, failure to comply with the new AML registration requirements may result in criminal penalties, including imprisonment for up to two years and fines reaching NT$5 million (approximately $155,900).
The draft regulations come in the wake of amendments made to Taiwan’s financial laws in July. According to the FSC, all VASPs, regardless of their previous compliance status, must adhere to the new registration requirements. This marks a significant shift from the previous AML obligations established in July 2021.
Kevin Cheng, a crypto lawyer and secretary general of the Taiwan Fintech Association, emphasized that non-compliant operators will face criminal liability.
He noted that compliant operators will encounter stricter regulatory obligations, effectively aligning the crypto industry more closely with licensed financial institutions.
The new rules introduce additional qualifications for management teams and emphasize corporate responsibilities, including transaction security and consumer asset protection.
As part of its ongoing regulatory efforts, the FSC is also considering a specific law proposal for crypto assets, which is expected to be submitted to Taiwan’s Executive Yuan in June 2025. The draft proposal is anticipated to be completed by the end of this year.
In a related development, the local crypto sector established an industry association in June to create self-supervisory rules under government guidelines.
The FSC's latest move aims to enhance legal protections for Taiwan's crypto industry, potentially attracting larger investors accustomed to traditional finance.
