Taiwan’s Financial Supervisory Commission (FSC) is set to implement a registration system for cryptocurrency exchanges by November 30.
The initiative, reported by local news outlet Anue Juheng, comes as part of the FSC’s broader efforts to enhance scrutiny and compliance within the cryptocurrency market.
26 Exchanges Gain AML Registration
During a recent session with the Legislative Yuan’s Finance Committee, FSC chairman Peng Chin-long revealed that 26 exchanges have acquired compliance declarations under anti-money laundering (AML) laws.
Additionally, he noted that another 20 to 30 applications are currently under review.
The FSC plans to increase inspections of crypto exchanges, with six firms scheduled for audits in the coming months.
This follows inspections of four larger operators last year, which uncovered significant compliance issues, including failures in identity verification and transaction monitoring.
Moreover, the FSC is in the process of drafting a “Special Law for Crypto Exchange Management,” with public hearings expected in early 2025.
The legislation aims to establish clearer guidelines on licensing, consumer protection, and operational standards for exchanges.
The FSC’s methodical approach indicates the challenges Taiwan faces in balancing innovation with consumer safety and regulatory compliance.
Earlier this year, the regulator proposed new AML regulations for crypto exchanges, requiring annual risk assessment reports and the establishment of robust internal control and audit systems to strengthen oversight.
The new rules focus on improving oversight of local virtual asset service providers (VASPs), reinforcing the regulatory framework to support a safer and more transparent crypto market.
Back in May, Taiwan authorities announced that they intend to punish cryptocurrency firms that fail to abide by its AML laws.
In response to fraud and money laundering risks in the virtual asset landscape, Taiwan’s Ministry of Justice proposed several amendments to the city’s existing AML laws, suggesting hefty fines and prison terms for non-compliant service providers.
Key components of the proposed amendments include regulations targeting fraud prevention, money laundering prevention, technology investigation and security, and communications security and supervision.
FSC to Launch Institutional Trial for Crypto Custody Services
More recently, the FSC announced plans to launch a trial for crypto custody services through local banks.
The FSC intends to begin accepting applications for the trial in the first quarter of 2025.
Three private banks have already expressed interest in participating in this pilot program.
Taiwan has been pushing for crypto regulations amid efforts to establish itself as a global cryptocurrency hub.
The country is set to impose restrictions on offshore cryptocurrency exchanges operating within its jurisdiction unless they gain the required registration.
In September last year, the country’s FSC drafted ten guiding principles for VASPs to establish self-regulatory rules.
The guiding principles, expected to be officially released by the end of this month, will focus on various aspects.
More specifically, the guidelines are expected to strengthen information disclosure, establish review standards for virtual asset listing and delisting, and ensure the separation and custody of companies’ and customers’ assets.
The post Taiwan’s Financial Regulator to Implement Crypto Exchange Registration System by Next Month appeared first on Cryptonews.
