Taiwan is accelerating its efforts to regulate the cryptocurrency industry with the introduction of new measures aimed at combating fraud and enhancing anti-money laundering (AML) compliance. The Financial Supervisory Commission (FSC) has announced that the regulations, originally set for December, will now take effect on November 30. This swift action underscores the government’s commitment to strengthening oversight and addressing concerns over illegal activities within the rapidly evolving crypto sector.
Starting immediately, all cryptocurrency exchanges and service providers—whether domestic or international—will be required to register with the FSC. Additionally, companies must establish a local office or branch in Taiwan to legally operate within the country’s borders. Failure to comply will result in severe penalties, including hefty fines and prison sentences of up to two years.
“These regulations will enhance transparency and protect consumers, making the crypto market safer while promoting broader adoption,” said Jin-Lung Peng, Chair of the FSC. The measures also include stricter transaction record-keeping, improved transparency, and clearer processes for listing and delisting cryptocurrencies. The FSC will closely monitor how exchanges manage customer data and safeguard user funds.
The urgency of these changes has been fueled by growing public concerns about crypto-related fraud and money laundering. Taiwan’s actions follow similar regulatory trends in countries like Singapore, the UK, and India, which are all working to establish transparent laws to protect investors and curb illicit activities.
In a demonstration of its commitment, the FSC recently imposed fines of NT$1.5 million (approximately $45,000) on two major local exchanges, MaiCoin and BitoPro, for failing to meet existing AML standards. The exchanges were found to have inadequately monitored transactions and lacked sufficient understanding of their customers’ fund sources.
The new rules aim to restore public confidence in the cryptocurrency market by reducing the risks of fraud and misuse. Industry observers suggest that Taiwan’s proactive stance could help it gain a competitive edge in the crypto market, especially as Bitcoin continues its ascent toward the $100,000 mark.
The fast-tracking of these regulations signifies Taiwan’s commitment to positioning itself as a secure and attractive hub for crypto innovation while ensuring investor protection and market integrity.
