Taiwan partners with Binance to strengthen anti-money laundering efforts

Taiwan's parliament approved revisions to its anti-money laundering (AML) regulations on July 16, mandating crypto service providers to register for AML compliance.

Non-compliance can result in penalties of up to two years in prison or fines of up to NT$5 million (approximately $153,817).

Taiwan AML Registration

The new legislation requires crypto entities in Taiwan to complete AML procedures and register as virtual asset providers (VASPs).

It includes specific categories for money laundering involving virtual asset accounts and third-party payment accounts.

Defaulting providers in these categories face prison sentences from 6 months to 5 years and fines up to NT$50 million.

Overseas crypto platforms must establish local entities and apply for AML registration to avoid criminal penalties.

Taiwan FSC steps up crackdown

Since 2021, the Financial Supervisory Commission (FSC) has mandated AML compliance for crypto service providers in Taiwan.

In March, the FSC announced plans to propose new digital asset regulations in September 2024 to ensure investor safety.

Taiwan’s Anti-Money Laundering regulations, known as the “New Four Laws to Combat Fraud,” cover Fraud Crime Harm Prevention Regulations, Money Laundering Prevention Law, Technology Investigation and Security Law, and Communications Security and Supervision Law.

Taiwan remains steadfast in enforcing strict supervision and internal controls to boost transparency and combat money laundering.

Deputy Chairman Qiu Shuzhen of the FSC stated that 25 virtual currency exchanges have submitted legal compliance statements to fight money laundering.

Challenges for Businesses

Kevin Cheng, Secretary General of the Taiwan Fintech Association, highlighted potential challenges for businesses that haven’t completed AML declarations, facing prolonged waiting periods and uncertainty about review standards.

Taiwan FSC partners with Binance

Binance collaborated with Taiwan to resolve a crypto-assisted money laundering case involving illicit funds of about NT$200 million (approximately $6 million).