New counter-terrorism and anti-money laundering laws in Taiwan places new requirements on Crypto Exchanges

New counter-terrorism and anti-money laundering laws in Taiwan places new requirements on Crypto Exchanges

The legislature of Taiwan has passed the law to amend the current counter-terrorism financing (CFT) and anti-money laundering (AML) laws to place new requirements on the cryptocurrency exchanges. On 2nd November, ‘Focus Taiwan’, the English news site of Taiwan’s national news agency reported this amendment.

These laws have also stated the presence of cryptocurrencies and its prospects. The governments all over the world have shown a keen interest in the unnamed transactions made via crypto. Since there is always a possibility of misusing the technology in smuggling drugs and arms over cross borders.

Due to the changes in the Terrorism Financing Prevention Act and Taiwan’s Money Laundering Control Act, the unicameral legislature of the Republic of China based in Taiwan can give Taiwan’s Financial Supervisory Commission (FSC) the authority to bar anonymous cryptocurrency transactions.

Taiwan’s Ministry of Justice (MoJ) has said, “These changes align the country more closely with international AML standards, and the ensuring of good AML and CFT practices will help to foster a compliance culture and mindset among local businesses and institutions.”

Taiwan’s Financial Supervisory Commission (FSC) now has the power to ask the customers to register using their real names which are required for the exchange operators. If the customers fail to do so the bank can now block the anonymous transaction. The bank can also report this transaction to the watchdog if they deem them to be suspicious.

The ministry further remarked, “Earlier amendments to the country’s Money Laundering Control Act had not fully prevented related financial crimes.” This latest action from the Legislature of Taiwan will better the performance of Taiwan in its upcoming assessment by Asia/Pacific Group on Money Laundering (APG).

This assessment will take place between 5th to 16th November. Financial Action Task Force (FATF), a world organization that has developed policies and AML standards, implemented these changes to its AML and CFT standards for the organisations concerned to cryptocurrency activities like exchanges and making available financial services for Initial Coin Offerings (ICOs).

Back then in June 2018, Taiwan had made public their plans to draft Initial Coin Offering (ICO) regulation. The chairman of the Financial Supervisory Commission (FSC) had told the Legislative Yuan on Oct. 22 that the more they regulate the more this economic behaviour wanes.

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