Taiwan Introduces New AML Regulations For Crypto Firms

According to Cointelegraph, the Financial Supervisory Commission (FSC) of Taiwan has unveiled new Anti-Money Laundering (AML) regulations that all local virtual asset service providers (VASPs) must adhere to by 2025. On October 2, the FSC released updated AML measures following earlier amendments proposed by the financial watchdog. Taiwan has been expected to introduce new crypto-related regulations since March. The new regulations mandate that all crypto firms register with the government by September 2025 or face penalties, including a two-year prison sentence or fines up to 5 million New Taiwan dollars ($155,900). Effective January 1, 2025, these regulations will replace the current system for Taiwanese VASPs. Even if companies have previously completed the old AML compliance measures, they are still required to meet the new standards and registration process. The FSC advised VASPs to consider waiting until the new registration system is implemented before submitting their documents to avoid reapplying under different rules. VASPs are also expected to prepare a risk assessment report and submit it to the respective government agency each year as part of the new compliance measures. The FSC is anticipated to submit a new proposal for crypto-related laws by June 2025, with a draft expected by the end of this year. In addition to its new AML regulations, the Taiwanese government has been expanding its involvement in the crypto sector. On September 30, the FSC opened the digital asset ETF market to local professional investors, allowing access to high-risk foreign digital asset exchange-traded funds (ETFs). This move aims to boost Taiwan’s financial market competitiveness and aligns with similar efforts in Hong Kong and Singapore.