Taiwan’s New AML Law: Jail Time for Illegal Crypto Operators
Key Takeaways
- Taiwan’s Legislative Yuan passed strict AML laws requiring crypto businesses to register and complete AML procedures.
- Non-compliance with the new regulations may result in up to two years in prison or fines up to NT$5 million.
- Overseas crypto platforms must establish local entities and register for AML compliance to avoid criminal penalties.
YEREVAN (CoinChapter.com) — On Tuesday, Taiwan’s Legislative Yuan passed amendments to the anti-money laundering (AML) laws. These changes require businesses and individuals involved in crypto services to complete AML procedures and register their service capacity. Failure to comply could result in up to two years in prison or a fine of up to NT$5 million ($153,800).
Taiwan Enforces Stricter AML Regulations with Criminal Penalties for Non-Compliance
The new rules also target overseas crypto platforms. They must establish local entities in Taiwan and apply for AML registration. Non-compliance may lead to criminal penalties. Before this, Taiwan’s Financial Supervisory Commission (FSC) had only administrative penalties for non-compliant firms.
In May, Deputy Minister of Justice Huang Mou-hsin stated that, at present, authorities are limited to imposing only administrative penalties on non-compliant crypto firms.
Crypto Lawyer Highlights Challenges and Uncertainties for Businesses Under Taiwan’s New AML Law
Kevin Cheng, a crypto lawyer and secretary general of the Taiwan Fintech Association, noted the challenges businesses might face. He said,
“It will be a difficult situation for businesses that have yet to complete AML declarations when the newly passed requirements take effect.”
He highlighted the uncertainty surrounding the review standards, which could cause prolonged waiting times and possible re-submissions.
FSC to Propose Crypto Law by 2025; Local Industry Forms Self-Regulatory Body
The FSC is planning a special law proposal for crypto assets. FSC Chair Jin-Lung Peng stated that the proposal would be submitted to the Executive Yuan, Taiwan’s highest administrative branch, by June 2025.
Last month, the local crypto sector established an industry association to create self-supervisory rules under government guidelines.
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