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Taiwan tightens crypto regulations with 2025 deadline

Taiwan tightens crypto regulations with 2025 deadline

GrafaGrafa2024/10/04 08:05
By:Liezl Gambe

Taiwan’s Financial Supervisory Commission (FSC) has announced tighter regulations for the cryptocurrency sector, requiring all virtual asset service providers (VASPs) to register with the regulator by September 2025. 

Non-compliance could lead to severe penalties, including up to two years in prison and fines up to NT$5 million ($155,000). 

The regulations, aimed at enhancing anti-money laundering (AML) efforts, will also include capital requirements and customer protection measures. 

The draft AML regulations are set to take effect on January 1, 2025. 

In addition to registration, VASPs must ensure that management teams have relevant experience and no criminal records. 

Even firms already compliant with current rules must re-register under the new requirements. 

Further regulatory developments include a planned “special law” for cryptocurrencies. 

This law, expected to be finalised by June 2025, will be modeled on regulations from the European Union, Japan, and other countries. 

It aims to establish a comprehensive framework for digital assets in Taiwan. 

Taiwan’s stricter regulations reflect global trends in overseeing the growing crypto industry. 

The FSC’s focus is on mitigating risks related to illicit activities while fostering innovation. 

The new measures align with international standards, aiming to enhance transparency and protect investors. 

While tightening oversight, Taiwan has also permitted institutional investors to trade foreign crypto ETFs, although under restrictions. 

Despite these steps, financial regulators remain cautious about the speculative nature of cryptocurrencies, emphasising the need for balanced regulation.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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