Taiwan’s Ministry of Justice is pushing for amendments to its Anti-Money Laundering (AML) regulations, targeting virtual asset service providers (VASPs) in a bid to combat fraud and enhance AML measures.
Under the proposed amendments, noncompliant firms could face jail terms of up to two years and fines of up to $1.5 million. These changes, outlined in the “New Four Laws to Combat Fraud” proposed by Taiwan’s Executive Yuan, seek to bolster efforts in cracking down on fraud and tightening regulations surrounding money laundering prevention for crypto service providers.
Key components of the amended regulations include provisions for fraud crime prevention, money laundering prevention, technology investigation and security, and communications security and supervision.
Notably, the proposed amendments introduce stricter penalties for VASPs found in violation of the law. This includes revised registration requirements and restrictions for both domestic and international currency dealers. Failure to comply could result in prison sentences for VASPs operating without proper registration.
Additionally, a new legal category has been established for money laundering offenses linked to third-party payment accounts and virtual asset accounts. Offenders could face jail terms ranging from six months to five years and fines of up to 50 million New Taiwan dollars ($1.5 million) for utilizing third-party accounts for money laundering.
Deputy Minister of Justice, Huang Mou-hsin, emphasized the need for stronger measures, stating that while current provisions allow for administrative penalties against noncompliant cryptocurrency companies, the proposed amendments would criminalize such behavior with significant fines and prison time.
Furthermore, the proposed regulations would require foreign cryptocurrency platforms to establish local entities and seek AML registration to avoid facing criminal penalties.
These proposals come in the wake of Taiwan’s securities regulator announcing plans to propose new laws for digital assets by September, indicating the country’s commitment to enhancing regulatory oversight in the crypto space.
