Taiwan Tightens its Crypto Regulations

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The Legislative Yuan, Taiwan’s highest legislative body, has approved a law that updates the country’s Anti-Money Laundering (AML) legislation to include digital assets.

This means that virtual asset service providers (VASPs) in Taiwan are now required to adhere to AML policies.

Under the new law, companies that offer virtual asset services or third-party payment services in Taiwan must establish an AML system and report their activities. Failure to comply with these regulations can result in significant fines.

Those who do not follow the new laws may face a prison sentence of up to two years and fines of up to 5 million New Taiwan Dollars ($153,000). The Legislative Yuan has stated that these laws are aimed at preventing fraud, targeting fraud rings, and protecting victims in the financial, telecommunications, and digital economy sectors.

VASPs must also monitor transactions and report any suspicious ones involving digital assets to law enforcement. An inter-bank inquiry system has been put in place to verify these transactions and freeze funds if necessary.