Taiwan Strengthens Regulations for Local Crypto Industry

Taiwan is making significant strides in regulating its local crypto industry, with the establishment of a self-regulating industry association and proposed amendments to anti-money laundering guidelines. The country is positioning itself as a proactive player in the APAC region, aiming to create a regulated environment for digital assets.

The newly formed ‘Taiwan Virtual Asset Service Provider Association’ will consist of 24 licensed service providers and will work under government guidance to establish self-supervisory rules. This association is expected to submit draft laws to the government by the end of the year, focusing on industry interests, governmental expectations, and consumer rights.

Leading the association are Titan Cheng, CEO of BitoPro, as Chair, and Winston Hsiao, co-founder of XREX, as Vice Chair. This move follows Taiwan’s recent proposal of refined amendments to existing anti-money laundering laws, targeting financial crimes in the virtual asset sector.

The proposed amendments include hefty fines and prison terms for non-compliant service providers, aiming to crack down on fraud and money laundering risks. If approved, offenders using crypto for money laundering could face up to five years in prison and fines of up to $1.5 million.

While the amendments are pending review by Taiwan’s national parliament, the establishment of the industry association and the focus on regulatory compliance signal Taiwan’s commitment to a regulated and compliant local crypto industry. This initiative could set clearer regulatory standards, potentially boosting industry participation and success.