Taiwan is to implement new anti-money laundering (AML) regulations for cryptocurrency companies after fining two exchanges for violations.
The Financial Supervisory Commission (FSC) announced on November 27 that the deadline for mandatory AML registration for virtual asset service providers (VASPs) has been moved from the previous deadline of January 1, 2025 to November 30, 2024.
The new regulations require all cryptocurrency service providers, including those already in operation, to register in accordance with the updated AML measures. Failure to comply could result in fines of up to $155,900 (5 million new Taiwan dollars) or imprisonment of up to two years.
According to FSC records, while 26 cryptocurrency providers have been approved to operate, none have yet completed the newly mandatory AML registration. The FSC has issued a detailed checklist to help exchanges identify suspicious activities.
This includes monitoring customer names, bank account data, IP locations and trading patterns. Exchanges are also advised to track unusual behavior, such as splitting funds, multiple accounts linked to the same IP and frequent asset transfers.
The ostracization came after the FSC imposed fines on two local exchanges, MaiCoin and BitoPro, for violations related to customer due diligence (CDD), transaction monitoring, record-keeping and reporting suspicious activity.
The fines underscore the regulator’s focus on strengthening Taiwan’s AML compliance framework. To comply with the new regulations, cryptocurrency service providers must submit a registration form describing their business operations.
Any changes to the submitted information must be reported to the Securities Over-the-counter (OTC) Trading Center within five business days.
In addition, cryptocurrency companies are required to establish a robust financial audit and accounting management system. Last month, Taiwan’s FSC announced that it plans to implement a registration system for cryptocurrency exchanges by November 30.
