Taiwan is set to enact new anti-money laundering rules that take effect July 1 in a move to further boost AML requirements for cryptocurrency exchanges operating on the island.
- The new rules, in line with guidance released by the Financial Action Task Force, will require exchanges in Taiwan to report transactions worth over NT$500,000 (US$17,900) conducted in cash, according to Taiwan’s Financial Supervisory Commission.
- Exchanges will need to fulfill know-your-customer requirements to ensure identity authentication of their clients, according to the new rules.
- The move seems unlikley to significantly affect the operations of the three biggest Taiwan-based exchanges — ACE Exchange, MaiCoin Ltd. and BitoPro — as they are “already doing pretty solid KYC,” Wayne Huang, a cybersecurity expert and co-founder of XREX Inc., a Taipei-headquartered exchange and trade technology solutions provider, previously told Forkast.News.
- David Pan, director and adviser at ACE Exchange, told Forkast.News in April that the exchange had “connected our system well with the criminal and investigative authorities.”
- Taiwan’s FSC warned in a statement last week that virtual currencies are highly speculative “virtual products” not authorized for issue by the regulator, and that the exchanges are not authorized for setup by it. Investors need to fully understand how they operate and assess risks before making any deal to avoid investment losses or falling prey to scams, the FSC said.