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The new rules will take effect on January 1, 2025, giving VASPs until September to register. Local reports confirm that companies not meeting these standards will face harsh penalties.
Key Notes
Taiwan’s FSC mandates all cryptocurrency VASPs to register by September 2025 under new AML rules.Non-compliance with the FSC’s regulations can result in fines up to NT$5 million and two-year imprisonment.The updated measures aim to increase transparency, prevent illegal activities, and strengthen financial ethics in the crypto sector.Taiwan’s Financial Supervisory Commission (FSC) has introduced new rules to tighten anti-money laundering (AML) measures in the crypto sector. After legal amendments in July, the FSC now requires all virtual asset service providers (VASPs) to register by September 2025. Non-compliance could lead to fines of up to NT$5 million ($155,900) and prison terms of up to two years.
In a statement on Wednesday, the FSC clarified that these rules will replace the anti-money laundering (AML) declarations set in July 2021. It stressed that every provider must follow the updated registration guidelines regardless of their current compliance. This move highlights Taiwan’s efforts to boost transparency and protect its growing crypto sector.
The new rules will take effect on January 1, 2025, giving VASPs until September to register. Local reports confirm that companies not meeting these standards will face harsh penalties. With this measure, the FSC aims to curb illegal activities in the crypto world and enforce strong financial ethics among all players.
Stricter Crypto Compliance Standards
Kevin Cheng, a leading crypto lawyer and secretary general of the Taiwan Fintech Association, explained that under the updated rules, non-compliant crypto operators will face criminal charges. In contrast, compliant ones will face stricter regulations. Cheng pointed out that the industry is shifting towards a model similar to licensed financial institutions.
In addition to AML requirements, the regulations set new standards for Virtual Asset Service Provider leadership. These new standards require leaders to be qualified and have added responsibilities for ensuring transaction security, protecting consumer assets, and securing information. Cheng added:
“The new regulations provide stronger legal protection for the development of Taiwan’s [crypto] industry, making it more attractive for large investors accustomed to traditional finance to participate.”
The FSC isn’t stopping with current regulations. It is also considering a specific law for crypto assets, aiming to present it to Taiwan’s top administrative body, the Executive Yuan, by June next year. According to local reports, the FSC plans to finalize this proposal by the end of this year.
Future of Crypto Regulation in Taiwan
In June, Taiwan’s cryptocurrency industry took a significant step toward self-regulation by forming an association to develop rules under government guidance. This partnership between regulators and businesses aims to create a safer, more unified environment for crypto firms. By aligning self-regulation with government policies, Taiwan sets an example for responsible digital asset growth.
With these new AML rules, Taiwan seeks a balance between innovation and security, promoting a more regulated and reliable cryptocurrency space. As the compliance deadline nears, virtual asset service providers must focus on meeting requirements to avoid penalties and help create a safer financial environment.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
With over 3 years of crypto writing experience, Bena strives to make crypto, blockchain, Web3, and fintech accessible to all. Beyond cryptocurrencies, Bena also enjoys reading books in her spare time.
