Taiwan Tightens Crypto Laws: VASPs Face AML Compliance

• Legislative Yuan handed amendments within the nation’s AML legislation to incorporate crypto.
• The exchanges within the area will now need to implement an AML system.
• Fines as much as $153K will likely be levied if crypto companies fail to comply with the AML insurance policies.

Taiwan’s highest legislative physique, the Legislative Yuan, has formally handed a legislation amending the nation’s Anti-Cash Laundering (AML) laws to incorporate digital property. The legislation now requires digital asset service suppliers (VASPs) within the area to stick to AML insurance policies.

In line with experiences, companies in search of to supply digital asset providers or third-party fee providers in Taiwan should set up an AML system and report their capability. Moreover, those that fail to adjust to the amended guidelines face hefty fines.

Non-compliance with the brand new legal guidelines may lead to jail sentences of as much as two years and fines as much as 5 million New Taiwan {Dollars} ($153,000). The Legislative Yuan states that the brand new legal guidelines intention to “strengthen fraud prevention operations, fight fraud rings, and defend victims, with fraud prevention measures within the monetary, telecommunications, and digital economic system areas.”

Digital asset service suppliers may even be required to watch transactions and report suspicious transactions involving digital property to the legislation enforcement. An inter-bank inquiry mechanism has been put in place for the verification of those transactions and freeze the funds earlier than it’s too late.

Additionally, with the intention to defend victims’ rights, digital asset platforms should promptly return any remaining cryptocurrencies when notified by authorities. Whereas concerned in such conditions, the service suppliers are exempt from confidentiality obligations and legal responsibility.

The Legislative Yuan has additionally banned advertisements, which is perhaps linked to frauds. This comes at a time when crypto crimes utilizing fraudulent schemes are prevalent. Such incidents use platforms like X (previously Twitter) and Instagram to lure customers and steal their cryptocurrencies. 

As reported earlier, main telecom providers supplier Taiwan Cell not too long ago purchased a cryptocurrency change and have become the second agency to be licensed as a digital asset service supplier in Taiwan.