Taiwan’s Financial Supervisory Commission (FSC) has announced new anti-money laundering regulations for cryptocurrency service providers that will be enforced starting November 30. These regulations require crypto exchanges and other virtual asset service providers (VASPs) to register for AML compliance. The deadline for mandatory AML registration for crypto companies was initially set for January 1, 2025, but has been pushed forward by a month.
In a statement released on November 28, the FSC stated that overseas entities offering virtual asset services in Taiwan must establish a local presence and complete the AML registration process under the Company Law. Currently, 26 crypto providers are approved to operate in the country, but all providers, whether registered or not, must comply with the updated AML requirements. To assist with compliance, the FSC issued a checklist to help platforms identify suspicious activities and monitor customer details and transaction activities.
Non-compliance with the new regulations could result in severe penalties, such as fines of up to NT$5 million ($153,700) and imprisonment for up to two years. This regulatory push follows the FSC’s recent decision to penalize two local exchanges, MaiCoin and BitoPro, for multiple violations of AML regulations. The exchanges were fined NT$1.5 million each for failing to improve customer due diligence, lacking knowledge of customers’ wealth sources, inadequate transaction records, and ineffective identification of suspicious transaction patterns.
Taiwan has been actively advancing cryptocurrency regulations to position itself as a global leader in the digital asset space. The FSC introduced ten guiding principles for VASPs last year to create self-regulatory frameworks, aiming to enhance transparency, establish standards for asset listing and delisting, and ensure proper separation and custody of client and company funds. The government also plans to introduce a registration system requiring cryptocurrency exchanges to register with the Taiwanese government by September 2025.
While tightening oversight, the government is also introducing measures to encourage growth in the sector. Last month, the Financial watchdog granted professional investors access to exchange-traded funds linked to foreign digital assets. Additionally, a pilot program for institutional cryptocurrency custody is in the works, with applications set to open in early 2025. Three private banks have already expressed interest in participating in this initiative.
