October 7, 2024
By Our Correspondent
Taiwan’s Financial Supervisory Commission (FSC) has announced that the new Anti-Money Laundering (AML) regulations for virtual asset service providers will be fully implemented in 2025.
The revised measures were unveiled on October 2 by the FSC, which had previously indicated a need to enhance the country’s cryptocurrency regulatory framework. These regulations have been in development since March.
New Cryptocurrency Regulations in Taiwan
Under the new rules, all cryptocurrency firms are required to register with the government by September 2025; failure to do so will result in significant penalties. Noncompliance or causing server failures may incur fines of up to 5 million New Taiwan dollars (approximately $155,900) or a potential two-year imprisonment.
The updated regulations will supersede the existing framework for Taiwanese virtual asset service providers starting January 1, 2025. Entities currently following the previous AML standards must transition to the new compliance procedures and register with the government.
Companies are encouraged to await the implementation of the new system and to submit their documentation accordingly to prevent confusion arising from varying regulatory requirements.
Additionally, the new compliance framework mandates that virtual asset service providers submit annual risk assessment reports to the relevant government authority. By the end of 2024, the FSC intends to draft a new proposal for cryptocurrency-related legislation, which it aims to present by June 2025.
The Taiwanese government is enhancing its engagement in the cryptocurrency sector through the introduction of new Anti-Money Laundering (AML) regulations.
On September 30, the FSC also entered the digital asset ETF market, facilitating investment opportunities for local professional investors.
This initiative is part of broader efforts to bolster Taiwan’s competitiveness in the financial sector, aligning it with neighboring financial centers such as Hong Kong and Singapore.
