The proposed law by Taiwan’s Executive Yuan is designed to curb fraud and regulate money laundering among crypto organizations.
To curb fraud and money laundering, Taiwan’s Ministry of Justice has proposed an amendment to the country’s Anti-Money Laundering Law (AML), with the main focus on crypto firms. This move is part of the country’s means of safeguarding its citizens from falling into the trap of crypto fraud.
The news announced today revealed that the authorities of the Asian country have suggested changes to the AML law, which could lead to heavy penalties for crypto firms that refuse to comply with these laws. In fact, non-compliant firms are in danger of facing up to two years in jail and additional fines of up to $1.5 million. The proposed amendment is now set to be reviewed by the Legislative Yuan, Taiwan’s national parliament.
Taiwan’s Deputy Minister of Justice, Huang Mou-hsin, revealed in a video that the authorities now have the power to impose punishment on crypto firms that refuse to comply with the stipulated law. He added that crypto platforms outside the country would need to have a local branch and apply for AML registration or face the risk of being charged for criminal activities.
The proposed law by Taiwan’s Executive Yuan is designed to curb fraud and regulate money laundering among crypto organizations. The core parts of the regulation include the money laundering prevention law, the fraud, and crime harm prevention regulations, the technology investigation and security law, as well as the communications security and supervision law.
Targeting Virtual Asset Service Providers (VASPs)
One of the major changes was also targeted at virtual asset providers (VASPs). The law places a heavier penalty on asset providers who do not comply with the regulation. Under the just-amended law, VASPs risk prison sentences if they provide services without being registered under the required authority.
The amendment also covers money laundering offenses linked to third-party payment accounts and virtual accounts. The penalties for using a third-party account for money laundering range from a jail term of six months to five years and an additional fine of up to 50 million new Taiwan dollars ($1.5 million).
Establishing a Crypto Industry Self-Regulatory Association
This new proposal follows up on what the country’s regulator said some months ago that it would introduce digital currency laws by September. Aside from that, Taiwan’s crypto sector is in the process of establishing an industry association, which has already received government approval. The purpose of creating this community is to enable crypto firms to create self-regulatory rules that align with regulations provided by the Financial Supervisory Commission (FSC).
The crypto organizations in Taiwan are expected to complete all necessary preparations and officially establish the industry association by the middle of this year. The formation of this association would serve as a platform for collaboration and coordination among cryptocurrency firms, therefore fostering compliance with regulatory requirements.
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