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Crypto businesses in Taiwan must register with the country’s financial regulator by the end of September 2025, or potentially face up to two years' imprisonment.
Taiwan’s Financial Supervisory Commission (FSC) said that all virtual asset service providers (VASPs) operating in the region must comply with the newest set of anti-money laundering (AML) regulations, which were updated in July 2024.
Companies that fall foul of the latest deadline could also face fines of up to roughly $155,000 (NT$5 million).
The new set of AML rules is still undergoing drafts and is on track to be launched on January 1, 2025.
Alongside the registration process, crypto firms will be required to meet capital requirements and provide “passive and active” protections under the new rules, according to reports in local media.
These measures could include ensuring that the management of crypto firms has sufficient professional experience and that they do not have any prior criminal convictions.
Taiwan introduced its previous batch of rules governing crypto AML in July 2021—but following the latest announcement, even fully compliant firms will have to re-register with the FSC to avoid punishment.
In addition to the AML registration deadline, the Taiwanese regulator also plans to propose an additional “special law” governing crypto according to local media.
The FSC reportedly looked to regulations in the European Union, Japan, Hong Kong, the United Kingdom and South Korea when drafting the new law, which is on track to be released in June 2025. This law then needs to be approved by the Executive Yuan, Taiwan’s highest court.
Taiwan and crypto ETFs
Taiwan’s regulations on crypto are also loosening up in some other respects, though.
As per a separate announcement from earlier this week, some institutional investors and high-net-worth individuals in the East Asian country will now be able to trade foreign crypto exchange-traded funds (ETFs).
However, there were a number of caveats. For example, a firm's Board of Directors must approve before the company can invest in crypto ETFs.
Taiwan’s financial regulators have previously expressed suspicion about cryptocurrencies. In March, the Chairman of the FSA Huang Tianmu “said that virtual assets have no intrinsic value, but are highly volatile”.
He also said that the “emergence of Bitcoin has nothing to do with the real economy” in an interview with a local publication discussing his plans to regulate the market.