Taiwan’s Financial Supervisory Commission (FSC) has expedited the implementation of new anti-money laundering (AML) regulations targeting Virtual Asset Service Providers (VASPs), advancing the effective date to November 30. Initially planned for December, the amendments aim to reinforce oversight in the growing cryptocurrency sector and prevent misuse of digital assets for illicit activities.
Under these rules, VASPs must comply with stringent Know Your Customer (KYC) protocols, continuous transaction monitoring, and robust reporting mechanisms to mitigate risks associated with money laundering and terrorist financing. Failure to meet these obligations could result in severe penalties, including fines exceeding $150,000 and imprisonment for up to two years. Businesses operating without registration may face criminal prosecution, signaling a departure from previous administrative penalties.
This regulatory shift underscores Taiwan’s determination to align with global AML standards, such as those outlined by the Financial Action Task Force (FATF). The FSC has highlighted a proactive enforcement approach, including financial inspections and penalties against non-compliant entities. In 2024 alone, the commission imposed substantial fines on several operators for failing to meet AML requirements.
Arabian Post – Crypto News Network
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