Taiwan New AML Laws Put Crypto Firms on Notice, Compliance Required by 2025

Taiwan Financial Supervisory Commission (FSC) has unveiled updated Anti-Money Laundering (AML) laws for Virtual Asset Service Providers (VASPs), requiring registration by 2025. Non-compliance could result in penalties, including imprisonment and fines.

The Financial Supervisory Commission (FSC) of Taiwan has announced new Anti-Money Laundering (AML) regulations, which will replace the existing system and require all local virtual asset service providers (VASPs) to fully comply by 2025.

The updated AML measures, released on October 2, come in response to financial sector amendments earlier this year, as Taiwan moves to tighten its regulatory framework for cryptocurrency businesses. Starting January 1, 2025, the new system will take effect, and all VASPs operating in Taiwan will be required to register with the government by September 2025.

Crackdown on Crypto

Under the new rules, any crypto firm that fails to comply with the registration process could face severe penalties, including a two-year prison sentence or fines of up to 5 million New Taiwan dollars ($155,900). The FSC clarified that companies must complete the registration process, even if they have already met the old AML standards.

Additionally, VASPs must prepare an annual risk assessment report to be submitted to the appropriate government agency, ensuring their operations meet the required compliance measures. The FSC urged firms to wait for the new registration system to go live before submitting their documents to avoid reapplying under a different set of rules.

The FSC is expected to release a draft of new crypto-related laws by the end of 2024, with the final proposal slated for submission in June 2025.

Taiwan’s Growing Crypto Regulation

In addition to the AML regulations, Taiwan’s government has taken other steps to strengthen its involvement in the crypto space. In late September, the FSC opened the digital asset exchange-traded fund (ETF) market to local professional investors, aligning with regulatory moves in Hong Kong and Singapore.

As Taiwan gears up for stricter crypto oversight, industry observers will be watching how these changes impact the local crypto community and Taiwan’s standing in the global digital asset landscape.

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