Taiwan is speeding up its new rules for cryptocurrency businesses. These rules are all about preventing money laundering (AML).
Stricter Rules, Sooner Than Expected
Instead of starting in January 2025, the new AML rules for Virtual Asset Service Providers (VASPs) – basically, crypto companies – kick in on November 30th, 2024. That’s almost a month earlier than planned! All crypto firms need to register with the government by September 2025. If they don’t, they’ll face hefty fines (up to $155,000) or even two years in jail.
What the New Rules Mean for Crypto Businesses
The new rules mean tighter controls. Crypto companies will be watched closely. They need to:
- Track all cryptocurrency listings and delistings.
- Prevent illegal trading.
- Report anything suspicious about trading volume or prices.
- Do yearly risk assessments and keep detailed records of customer assets.
- Keep customer assets safe and separate from their own money.
Registration involves filling out a form detailing the business. Any changes need to be reported within five business days. This new system replaces the old one, and even companies that already followed the old rules need to register under the new ones. Two exchanges, MaiCoin and BitoPro, were already fined for not following the old AML rules properly.
More Crypto Regulations on the Horizon
Taiwan isn’t stopping there. The government is also tackling crypto tax evasion. They plan to review current tax laws within three months to find better ways to tax cryptocurrency profits. Currently, they collect taxes from businesses, but individual investors are harder to track. This is a challenge, as investors can try to hide their transactions. So, expect more changes to the tax laws soon.
