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Taiwan has fast-tracked its new Anti-Money Laundering (AML) regulations for cryptocurrency businesses, following recent penalties imposed on two crypto exchanges for non-compliance. This move underscores the country’s commitment to strengthening its financial regulations as part of the broader effort to curb money laundering within the crypto sector.
On November 27, the Financial Supervisory Commission (FSC) announced an updated deadline for crypto exchanges to comply with the money laundering prevention registration mandate. Initially set for January 1, 2025, the registration deadline is now advanced to November 30, 2024. This change highlights Taiwan’s urgency in addressing the growing concerns around money laundering in the cryptocurrency market.
Failure to register by the revised deadline will result in severe penalties for virtual asset service providers (VASPs), including potential fines of up to 5 million New Taiwan dollars ($155,900) or even a two-year prison sentence. This strict enforcement aims to encourage crypto businesses to meet the regulatory requirements swiftly.
Under the new regulations, both newly established and previously registered crypto businesses will be required to complete the AML registration process. The FSC confirmed that while 26 crypto entities have been approved to operate in Taiwan, none of them have yet completed the mandatory money laundering prevention registration. As a result, all crypto providers, regardless of prior registration status, must comply with the new mandate.
The FSC has also provided a comprehensive checklist for crypto exchanges to identify suspicious activities. These include monitoring customers for irregularities such as frequent changes in personal information, multiple accounts associated with the same IP address, and unusual transaction patterns like splitting funds or asset swapping. This checklist is designed to help exchanges enhance their monitoring systems and prevent illicit activities.
In addition to the AML registration, Taiwan’s authorities are preparing to trial crypto custody services through local banks in 2025, further solidifying their regulatory stance on digital assets.