Taiwan Accelerates Crypto AML Regulations Amid Exchange Fines

Taiwan has expedited the rollout of its Anti-Money Laundering (AML) rules for cryptocurrency businesses, following recent fines against two exchanges for failing to meet compliance standards.

In a shift announced on November 27, the Financial Supervisory Commission (FSC) moved the deadline for crypto exchanges to register under the new AML framework up to November 30, advancing it from the original January 1, 2025 date. This change came after the recognition that crypto operators not adhering to the regulations could face severe consequences, including heavy fines or potential prison time.

The revised rules extend beyond just newly established crypto exchanges, affecting even those already in compliance. According to the FSC, while 26 crypto providers are currently allowed to operate in the region, none have yet completed the mandatory AML registration, signaling the urgency for all businesses to take action.

The commission highlighted that exchanges must be vigilant in monitoring transactions, with a particular focus on suspicious activities such as fund splitting or frequent asset transfers across multiple accounts. Providers are also instructed to scrutinize unusual behavior like repeated changes in personal information or IP address patterns.

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This regulatory push follows recent penalties imposed on platforms like MaiCoin and BitoPro, which were fined on November 28 for failing to meet the standards set for customer due diligence and transaction monitoring.

Under the new rules, cryptocurrency service providers are required to file a short form outlining their business operations and notify authorities of any significant changes within a five-day window. Additionally, businesses must implement a robust management system for overseeing their financial records and ensuring ongoing compliance with the stringent new regulations.

Alexander Stefanov