Taiwan set to launch new cryptocurrency regulations

Taiwan is set to carry out new regulations that would strengthen the anti-money laundering requirements for the cryptocurrency exchanges operating in the island nation.

The new regulations will not only set the stage for closer supervision of the crypto industry in Taiwan but will also give clarity and certainty, which would make the nation a prime destination for crypto start-ups in the future, experts say.

According to Taiwan’s Financial Supervisory Commission (FSC), the new rules will take effect on July 1 and would classify exchanges and other platforms with security token offerings as institutions governed by the Money Laundering Control Act (MLCA).

How things will work

The cryptocurrency exchanges in Twain will be mandated to disclose transactions that are more than NT$500,000 ($17,800). They will also need to accomplish know-your-customer requirements to make sure that their clients’ identities are authenticated.

The move, initiated by the FSC, came shortly after the Executive Yuan announced this month that all cryptocurrency trading platforms and exchanges would be considered virtual currency platforms under the provisions of the MLCA. The FCS was then instructed to formulate relevant rules.

The MCLA requirements are generally in line with the guidelines released by the Financial Action Task Force (FATF), which is an independent body that seeks policies to counter money laundering.

Scrutiny towards normalization

For those who understand the situation, the greater government scrutiny implemented by Taiwan is no surprise at all.

According to Forkast, a former legislator in Taiwan that promoted Fintech and blockchain in the person of Jason Hsu said, “this is a right step towards the normalization of the crypto industry.” He added he is “totally aware of the importance to create a guideline for virtual assets.”

Hsu was part of the task force that amended the MLCA in 2018 and is considered an authority with regards to this discussion.

 

Image courtesy of The Coin News/YouTube

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