The documentation states that both local and foreign virtual asset service providers (VASPs) must undergo an Anti-Money Laundering (
AML) registration process. Leaders of organizations that do not comply with this requirement face up to two years in prison.
Using virtual asset accounts and third party payment accounts for money laundering purposes will be punishable by six months to five years in prison and a fine of up to NT$50 million (approximately US$1.54 million).
Taiwan's Financial Supervisory Commission (
FSC) will act as the supervisory authority.
Taiwan's Deputy Justice Minister, Huang Mou-hsin, noted that under current regulations, the government can only take administrative measures against cryptocurrency companies that violate regulations. However, the new bill, which is proposed for consideration, provides for criminal liability for such violations.
The proposed law would expose foreign cryptocurrency platforms to the risk of criminal penalties unless they set up local firms and apply for anti-money laundering registration.
It is reported that 25 local trading platforms have already completed applications to comply with these requirements.