Taiwan’s Financial Supervisory Commission (FSC) has introduced new anti-money laundering (AML) regulations that all local virtual asset service providers (VASPs) must comply with by 2025, Cointelegraph reported.

The new regulations require all crypto companies to register with the government by September 2025 or face up to two years in prison or a fine of NT$5 million (about $155,900).

The new regulations will come into effect on January 1, 2025, replacing the current system. Even if a company has completed the old AML compliance measures, it will still need to meet the new standards and registration process.

The FSC recommends that VASPs wait until the new registration system is implemented before submitting their documents to avoid having to reapply under different rules.

VASPs will also be required to prepare and submit risk assessment reports annually to relevant government agencies as part of the new compliance measures.

The FSC is expected to submit proposals for new crypto-related laws by June 2025, with a draft expected to be completed by the end of this year.

In addition, the Taiwanese government is expanding its involvement in the crypto space. On September 30, the FSC opened the digital asset ETF market to local professional investors, allowing access to high-risk foreign digital asset exchange-traded funds (ETFs) to enhance the competitiveness of Taiwan's financial market and align with similar efforts in Hong Kong and Singapore.