Taiwan Тo Introduce AML Rules for Cryptocurrencies by Year End

Officials step up efforts to bring more transparency to crypto trading in the country

by Maya Bogdanova
23 April • 2 min
In Regulation

Taiwan plans to introduce anti-money laundering (AML) regulations on Bitcoin (BTC) and other cryptocurrencies by the end of the year, Minister of Justice Chiu Tai-san said at an AML event on Friday, as quoted by Taiwan Central News Agency.

According to the report, Taiwan’s justice department has started discussions with relevant regulators and industry players on the best way to monitor the risks around cryptocurrencies. The legal framework is scheduled to take effect before a November visit to Taiwan by the Asia Pacific Group on Money Laundering, an inter-governmental agency which focuses on the prevention of such activities.

Wellington Koo, chairman of the Taiwan’s Financial Supervisory Commission (FSC), financial watchdog, commented during the event that the current problem with Bitcoin is “who has purchased it and who it is sold to”.

In October 2017, the FSC showed support for Initial Coin Offering (ICO), cryptocurrency, and Blockchain adoption and innovation within the country.

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However, in response to the recent volatile movements of Bitcoin prices, central bank governor Yang Chin-long Yang Chin-long, said earlier this month that the bank’s “response measures” to the noted “opacity” of BTC transactions are to first remind investors of risks, and then to move towards AML regulation. Reportedly, Taiwanese banks have already been ordered to list Bitcoin trading platforms’ accounts as “high-risk clients” and flag transactions above a certain threshold to the FSC.

Taiwan is home to a 25,000-strong crypto trading community, with a few active exchanges operating domestically, including MaiCoin and BitoEX.

Other major Asian governments have already moved to capture cryptocurrencies under AML rules. As of February, cryptocurrency investors in South Korea have to use real-name bank accounts in order to continue trading in the country. Crypto exchanges in Malaysia are also required to identify traders after the government enacted AML legislation in early March.

Elsewhere, members of the European Parliament voted this week in favor of AML reforms, which will include stricter regulation for digital currencies. The new reforms are focused on ensuring transparency in order to prevent the large-scale concealment of funds, and compels trusts and trading companies to reveal cryptocurrency holders.