Taiwan requires virtual currency companies to register for anti-money laundering compliance by September 2025. Violations may result in severe penalties, including imprisonment. The new rules will require cryptographic service providers to meet strict registration conditions and procedures.
Taiwan’s Financial Supervisory Commission (FSC) has drafted new AML regulations, marking a significant step towards the development of the country’s regulatory framework for cryptocurrencies.
As amended in July, these regulations require all VASPs to declare registration with the FSC by the end of September 2025. Failure to comply could result in warrants being issued, including up to two years in prison, and Taiwan could become tougher on illegal activities. The world of cryptocurrencies.
Detailed registration framework
The FSC has defined a detailed registration system in its draft “Anti-money laundering and registration measures for companies or individuals providing virtual asset services”. VASPs shall apply for registration in specific industries, namely crypto asset exchanges, trading platforms, custodians and transfer service providers.
Key elements comprising the draft law include negative eligibility requirements imposed on individuals operating such businesses. It also ensures that the responsible party or beneficiary complies with the standards imposed by law. Registration also includes information on procedures such as filing documents, when to register, and in the event of going out of business.
In addition, the FSC’s AML framework also requires strict compliance with legal requirements regarding the separation of customer and company assets, information security, and customer complaint handling.
Crypto industry to adjust to revised anti-terrorism measures
Additionally, the FSC has updated existing anti-money laundering measures and, therefore, the fight against terrorist financing. According to the newly introduced regulations, VASPs are required to conduct a risk assessment and report annually.
The company will also develop internal controls and audit systems that comply with Taiwan’s anti-money laundering law and related regulations established by the Virtual Currency Business Association.
The new measures abolish the compliance declaration regime currently in place and provide instead that all VASPs register under the operation of the new registration regulations. For this reason, the FSC recommends companies not to submit documentation in advance to avoid filing under a different regime.
Nevertheless, these regulations move Taiwan closer to a more regulated and transparent crypto environment, bringing its laws in line with global standards to combat money laundering and financial crimes within the industry.
Related Books | Peter Brandt: Bullish turnaround in Bitcoin requires a $71,000 break
