Taiwan enacts 4 laws to tackle fraud and money laundering in digital assets
Taiwan’s Executive Yuan has taken a significant step to curb financial crimes by approving four new laws aimed at combating fraud and enhancing anti-money laundering measures, particularly within the digital asset space.
As reported by the local newspaper ‘abmedia,’ these laws collectively aim to tighten the government’s grip on a range of criminal activities, ensuring a robust legal framework to address emerging challenges in finance and technology.
Detailed breakdown of the new legislation
The new legislative package includes the Fraud Crime Harm Prevention Regulations, the Money Laundering Prevention Law, the Technology Investigation and Security Law, and the Communications Security and Supervision Law.
These laws are designed to work in synergy to tackle the complexities of modern financial crimes, with a particular focus on the rapidly evolving sector of digital assets.
Strengthened Money Laundering Prevention Law
A key feature of the updates is the revamped Money Laundering Prevention Law, which now imposes stricter penalties for non-compliance, specifically targeting virtual asset service providers (VASPs).
Notable amendments include rigorous registration requirements, with penalties for non-compliance reaching up to two years in prison.
The law introduces special categories for money laundering crimes involving virtual asset accounts and third-party payment accounts, with penalties ranging from six months to five years in prison and fines up to NT$50 million.
Regulatory measures for currency dealers
The revised laws also set stringent compliance regulations for both domestic and foreign currency dealers operating in Taiwan.
These regulations mandate that foreign currency dealers either complete appropriate company registration or establish branches within the country, ensuring they meet Taiwan’s anti-money laundering standards.
Impact on the cryptocurrency industry
The Financial Supervisory Commission’s Deputy Chairman, Qiu Shuzhen, highlighted the FSC’s vital role in this regulatory overhaul.
His remarks underscored a commitment to rigorous supervision, internal control, and enhanced transparency.
This legislative move has already seen twenty-five virtual currency exchanges in Taiwan affirm their compliance with the new anti-money laundering provisions.
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