- Four changes to Taiwan’s AML laws were recommended by the Ministry of Justice, with an emphasis on cryptocurrency companies who want to charge steep fines for violation.
- To tackle fraud and implement stronger AML laws for virtual asset service providers (VASPs), Taiwan seeks to modify its Anti-Money Laundering (AML) regulations.
The Ministry of Justice in Taiwan has suggested changes to the current Anti-Money Laundering (AML) legislation, which may result in fines of up to $1.5 million and jail terms of up to two years for noncompliant businesses. The Legislative Yuan, Taiwan’s national parliament, will consider the proposed revisions.
The Executive Yuan of Taiwan suggested the “New Four Laws to Combat Fraud.” The changes are intended to tighten regulations on money laundering prevention measures for cryptocurrency service providers and to bolster the fight against fraud.
The money laundering prevention law, the technology investigation and security law, the communications security and supervision law, and the fraud crime harm prevention regulations are the four essential parts of the modified regulations.
The new money laundering prevention law that targets virtual asset service providers is the most significant development. VASPs who break the law will be subject to more severe sanctions for their noncompliance.
The law has been amended in three different ways, necessitating updated registration requirements and limitations for dealers of foreign and domestic currencies.
VASPs who provide services without registering with the appropriate government run the possibility of facing jail time under the recently modified laws.
For money laundering charges connected to virtual asset accounts and third-party payment accounts, a new legal category has also been established.
Penalties for using third-party accounts for money laundering include fines of up to $50 million New Taiwan dollars ($1.5 million) and jail terms ranging from six months to five years.
According to Taiwan’s Deputy Minister of Justice, Huang Mou-hsin, the government may only penalize noncompliant cryptocurrency enterprises administratively under the current regulations. But the recently proposed law makes it illegal and imposes harsh penalties and jail sentences for such actions.
Foreign cryptocurrency platforms would be subject to criminal penalties under the new law unless they create local enterprises and pursue AML registration.
The country’s securities regulator announced a few months ago that new regulations pertaining to digital assets would be proposed by September. This is when the new suggestion was made.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
