The Financial Supervisory Commission (FSC) of Taiwan introduced new Anti-Money Laundering (AML) regulations that all local virtual asset service providers (VASPs) must comply with by 2025.
On Oct. 2, the FSC <a data-ct-non-breakable="null" href="https://www.fsc.gov.tw/ch/home.jsp?id=96&amp;parentpath=0,2&amp;mcustomize=news_view.jsp&amp;dataserno=202410010002&amp;dtable=News" rel="nofollow noopener" target="_blank" text="null" title="https://www.fsc.gov.tw/ch/home.jsp?id=96&amp;parentpath=0,2&amp;mcustomize=news_view.jsp&amp;dataserno=202410010002&amp;dtable=News">released</a> updated AML measures following earlier amendments proposed by the financial watchdog. Taiwan has been <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/taiwan-digital-currency-laws-september-report" rel="" target="_self" text="null" title="https://cointelegraph.com/news/taiwan-digital-currency-laws-september-report">expected to roll out new crypto-related regulations</a> since March. 
<h2 id="cracking-down-on-crypto">Cracking down on crypto</h2>
The new regulations require all crypto firms to register with the government by September 2025 or face penalties, including a two-year prison sentence or fines of as much as 5 million New Taiwan dollars ($155,900).&nbsp;
Effective Jan. 1, 2025, the regulations will replace the current system for Taiwanese VASPs. Even if companies have completed the old AML compliance measures, they are still expected to meet the new standards and registration process.&nbsp;<iframe width="100%" height="315" src="https://www.youtube.com/embed/vIuGbI4SLvc" frameborder="0" allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe><advertisement>
 <advertisement>
 The FSC advised VASPs to wait until the new registration system is implemented before submitting their documents to avoid reapplying under different rules.
 </advertisement>
</advertisement>
VASPs are also expected to prepare a risk assessment report and submit it to the respective government agency each year as a part of the new compliance measures.&nbsp;
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/taiwan-central-bank-cbdc-steady-progress" rel="null" target="null" text="null" title="null">Taiwan central bank says no rush for CBDC launch</a>
The FSC is expected to submit a new proposal for crypto-related laws by June 2025, with a draft anticipated by the end of 2024.&nbsp;
Cointelegraph has contacted the FSC for additional information on its upcoming AML laws. Cointelegraph has also contacted local Taiwanese law firms to help understand the impact of these laws on the local crypto community.&nbsp;
<h2 id="taiwan-crypto-moves">Taiwan crypto moves</h2>
In addition to its new AML regulations, the Taiwanese government has expanded its involvement in the crypto sector.
On Sept. 30, the FSC <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/taiwan-fsc-approves-foreign-crypto-etfs-for-investors" rel="null" target="null" text="null" title="null">opened the digital asset exchange-traded fund market </a>to local professional investors.
This move aims to boost Taiwan’s financial market competitiveness and aligns with similar efforts in Hong Kong and Singapore.
Asia Express: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/tether-treason-taiwan-crypto-exchange-resurgence-asia-express/" rel="null" target="null" text="null" title="null">Treason in Taiwan paid in Tether, East’s crypto exchange resurgence</a>

Taiwan’s new AML laws put crypto firms on notice

Table of Contents

Cointelegraph

Other articles published on Oct 3, 2024

Binance Labs’ Recent Investment: What is OpenEden?

Binance Implements Changes to Tracking and Seed Labels for Altcoins

Bitwise’s XRP ETP S-1 filing sparks on-chain activity from whales

Altcoins Market Crash: How Low Will Altcoins Drop?

Cab driver set to retire after investing in DTX Exchange

Ripple Faces New Challenge as SEC Appeals Court Ruling

Join our free newsletter for daily crypto updates!