Taiwan’s Financial Supervisory Commission (FSC) has announced new regulations aimed at enhancing compliance for virtual asset service providers (VASPs) under the nation's anti-money laundering (AML) framework. These measures are in accordance with Article 6 of the Money Laundering Prevention Law.
Effective immediately, enterprises or individuals offering virtual asset services must complete AML registration with the central industry authority before commencing operations within Taiwan. Foreign providers are required to establish a local company or branch and complete AML registration under the Company Law prior to offering services in the country.
Violations of these rules could lead to criminal penalties, including imprisonment for up to two years. Additionally, the FSC has published detailed guidance, including examples of suspected money laundering, terrorism financing, and compliance requirements for VASPs, to ensure clarity and accountability.
Taiwan's updated AML regulations have prompted virtual asset service providers to adjust their policies for compliance. Binance, for instance, has revised its peer-to-peer (P2P) merchant policies for the New Taiwan Dollar (TWD) market by implementing stricter verification measures in alignment with Taiwan’s FSC AML Compliance Statement.
According to a Statista report from 2022, over 50% of Taiwanese cryptocurrency investors were under 24 years old, indicating strong interest among younger demographics.
Statista projects that by 2024, Taiwan's digital assets market will reach a total asset under management (AUM) of approximately $997.40 million.