Taiwan is taking regulatory steps to manage its growing cryptocurrency sector. In a recent action, the country has complied with crypto companies’ Anti-Money Laundering Act (AML) laws. With the expansion of the crypto ecosystem, Taiwan has become a hub for Web3 initiatives. Taiwan’s cryptocurrency market is expected to grow at a rate of 7.75% per year from 2024 to 2028, according to Statista.
This week, the Taiwan Financial Supervisory Commission (FSC) announced that all crypto companies currently operating or planning to establish business in the country must submit AML registration. As Cointelegraph reported, the FSC has accelerated the registration deadline, starting from the original date of January 1, 2025 until November 30, 2024, Cointelegraph reported that it cites information from official documents.
“Unless they have registered a company or branch under the law, companies established overseas or companies established overseas or provide virtual asset services in our country unless they have established a company or branch in accordance with the law of the company,” Mandarin Printing The official document says.
Virtual Asset Service Providers (VASPs) found to have violated FSC instructions may face up to two years in prison or up to twd 5 million (approximately Rs 130 crore).
Under Taiwan’s anti-money laundering regulations, companies must provide detailed information about the measures taken to prevent illegal funds from being transported using cryptocurrencies. Crypto exchanges are also required to monitor and report suspicious customers’ names, account details and locations in a timely manner.
The accelerated deadline for Taiwan’s AML registration is the recent fine for FSC to impose AML violations on Maicoin and Bitopro.
The FSC is strengthening oversight of Taiwan’s crypto activities as it attempts to integrate Web3 services into the U.S. financial ecosystem. In October, FSC official Hu Zehua said there was growing interest in private lenders in the field, and regulators aim to involve financial institutions in pilot programs for virtual asset custody services.
Similarly, countries such as India and Japan also require AML to comply with crypto companies. These regulations require crypto companies to assist law enforcement agencies in monitoring and addressing potential criminal activities in the cryptocurrency space.
