As an analyst with a background in financial regulation and experience in the Asian market, I strongly support Taiwan’s proposed amendment to its Anti-Money Laundering Law. The focus on crypto firms and virtual asset service providers (VASPs) is particularly noteworthy given the increasing risks of fraud and money laundering activities in the digital asset space.
To combat fraud and money laundering, Taiwan’s Ministry of Justice aims to pass an amendment to the nation’s Anti-Money Laundering Law (AML). The primary target of this legislation are cryptocurrency companies. This action is part of Taiwan’s commitment to protecting its citizens from crypto scams.
As a researcher, I’ve uncovered some intriguing news: Authorities from an Asian nation have proposed modifications to their Anti-Money Laundering (AML) law. These adjustments could result in severe consequences for crypto companies that fail to adhere. In the event of non-compliance, firms may face imprisonment for up to two years and fines reaching $1.5 million. This proposed amendment will next be deliberated upon by the Legislative Yuan, Taiwan’s parliament.
The Deputy Minister of Justice in Taiwan, Huang Mou-hsin, disclosed in a video that the government now holds the authority to impose penalties on cryptocurrency companies that fail to adhere to the prescribed legislation. He further mentioned that crypto platforms based outside the country must establish local branches and register for Anti-Money Laundering (AML) compliance, or else they may be held accountable for engaging in illicit activities.
The Executive Yuan in Taiwan is proposing a new law aimed at combating fraud and managing money laundering within crypto businesses. Key elements of this legislation include the Money Laundering Prevention Act, regulations for preventing fraud and harm from crimes, technology investigation and security measures, and communications security and oversight provisions.
Targeting Virtual Asset Service Providers (VASPs)
One significant modification affects virtual asset service providers (VASPs) as well. This legislation imposes more severe consequences on VASPs that fail to adhere to regulatory requirements. Consequentially, unregistered VASPs may face imprisonment under the newly revised law for offering their services without proper authorization.
This amendment extends its reach to money laundering activities connected to third-party payment and virtual accounts. The consequences for utilizing such accounts for money laundering can result in imprisonment ranging from half a year to five years, accompanied by a fine of approximately $1.5 million (50 million new Taiwan dollars).
Establishing a Crypto Industry Self-Regulatory Association
As a researcher, I’ve uncovered some intriguing developments in Taiwan’s cryptocurrency landscape. Recently, the country’s regulatory body announced plans to introduce digital currency laws by September, following up on earlier statements. In parallel, the crypto sector is working towards establishing an industry association, which has already gained government approval. The aim of this community is to empower crypto businesses to create self-regulatory rules that align with regulations set forth by the Financial Supervisory Commission (FSC).
Crypto companies based in Taiwan are planning to finalize all essential preparations and formally set up their industry association by mid-year. The establishment of this association will provide a forum for cooperation and alignment among cryptocurrency businesses, enhancing their adherence to regulatory standards.
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2024-05-09 19:50