The post New Crypto Rules in Taiwan Set to Tackle Fraud and AML Compliance appeared first on Coinpedia Fintech News
It’s not just Taiwan that is gearing up its crypto game; many countries like Singapore, Iran, Dubai, the UK, and India are working to create fair and transparent laws to protect investors from fraud and scams. However, with the Trump effect, Taiwan is putting its foot down to tackle crypto fraud with a new set of rules set to go into effect on November 30, a month earlier than planned.
The country’s Financial Supervisory Commission (FSC) has decided to fast-track anti-money laundering (AML) regulations to strengthen the crypto industry’s oversight and prevent illegal activities like money laundering and fraud.
With this urgent call, many are speculating that Taiwan wants to leverage the crypto market before Bitcoin hits $100K. Let’s get into the insight of the story.
What’s New for Crypto Companies?
Starting soon, all crypto exchanges and service providers in Taiwan—whether local or foreign—must register with the FSC and comply with stricter AML rules. This includes establishing a local office or branch in Taiwan if they want to operate within the country. Non-compliance will lead to severe penalties, including fines and even up to two years in prison.
These new regulations go beyond just cracking down on money laundering. Crypto companies will now be required to improve transparency, keep better records of transactions, and put in place clearer procedures for listing and delisting cryptocurrencies. The FSC is also tightening scrutiny on how exchanges handle customer data and protect user funds.
Why the Rush?
The FSC’s decision to fast-track these changes comes in response to public demand for stronger fraud prevention measures in the wake of increasing concerns about crypto-related fraud. Jin-Lung Peng, Chair of the FSC, emphasized that the new framework will help protect consumers make the crypto market safer, and increase crypto adoption.
Penalties for Non-Compliance
This week, Taiwan’s major exchanges, MaiCoin and BitoPro, were fined NT$1.5 million (about $45,000) for not complying with existing AML rules. They were found to have failed to adequately monitor transactions and understand the sources of their customers’ funds. These actions highlight the government’s increasing vigilance in ensuring that crypto companies follow the new standards.
Expert Opinions
Crypto lawyer Kevin Cheng noted that the new regulations bring stricter oversight for existing virtual asset service providers (VASPs). This broadens the scope beyond just AML measures, ensuring stronger consumer protection and improved data security.
In short, Taiwan is on its way to Self-regulation and this is the right time to establish new laws as the entire crypto market is in green and Bitcoin is all set to hit $100K by year-end. With Trump’s win countries like Russia, Hong Kong, and Singapore want to increase their crypto adoption before it’s too late. Moreover, Taiwan already has a strong crypto base and new laws may boost investor faith.
