Taiwan has expedited the implementation of new Anti-Money Laundering (AML) regulations for cryptocurrency businesses, moving the deadline forward by more than a month following enforcement actions against two prominent crypto exchanges.
AML Compliance Deadline Moved Up to November 30
On November 27, Taiwan’s Financial Supervisory Commission (FSC) announced that the deadline for virtual asset service providers (VASPs) to comply with new AML registration requirements was moved to November 30, 2024, from the original January 1, 2025, date. The shift underscores the government’s intensified focus on regulating the rapidly evolving crypto industry.
Under the revised mandate, crypto exchanges failing to register with the FSC face severe penalties, including up to two years in prison or fines of up to 5 million New Taiwan dollars (approximately $155,900).
Mandatory Registration for All Crypto Providers
According to the FSC, 26 crypto businesses are already approved to operate under existing regulations, but the new mandate applies universally. All crypto providers—whether previously registered or not—must complete the Money Laundering Prevention Registration under the new framework. The FSC emphasized:
“No business operators have completed the Money Laundering Prevention Registration under the VASP Registration Measures.”
The FSC also issued a checklist to help crypto businesses monitor suspicious activities. It advises tracking customer names, bank details, IP addresses, and frequent account changes. Exchanges must also flag unusual behavior such as fund splitting, multiple accounts using the same IP, and sudden asset switches.
Enforcement Action: MaiCoin and BitoPro Fined
On November 28, the FSC fined two major crypto exchanges, MaiCoin and BitoPro, for violations related to customer due diligence (CDD), transaction monitoring, record-keeping, and reporting suspicious activities. The penalties highlight Taiwan’s commitment to enforcing AML standards across its crypto sector, as reported by *Regulation Asia*.
To comply with the new AML rules, crypto service providers must submit a one-page form outlining the nature of their business. Any updates to business operations must be reported to Taiwan’s Securities Over-the-counter (OTC) Trading Center within five business days.
Furthermore, crypto businesses are now required to establish robust accounting and auditing systems to ensure transparency and adherence to AML protocols.
