Gairika Mitra
Taiwan’s Financial Supervisory Commission (FSC) has introduced new rules to tighten anti-money laundering (AML) measures in the crypto sector.
The FSC has developed a draft of the “Money Laundering Prevention and Registration Measures for Enterprises or Personnel Providing Virtual Asset Services,” also known as the VASP Registration Measures. This draft includes amendments to the “Virtual Currency Platform and Trading Business Enterprise Prevention and Control Measures,” along with the “VASP Anti-Terrorism Measures.”
Key Features of the Draft VASP Rules
The draft VASP registration regulations consist of 31 articles addressing various aspects of virtual asset services. Key components include:
- Business Categories and Registration: VASPs must register according to their specific business categories. These include virtual asset exchanges, trading platforms, transfer providers, custodians, and underwriters (Articles 2 and 3).
- Registration Conditions and Procedures: The regulations outline negative qualification criteria for responsible individuals and substantial beneficiaries (Article 4). Apart from this it also includes documentation and procedures necessary for registration (Article 5). They also specify timelines for starting and terminating business operations (Article 6). Along with this also includes reasons for potential non-registration (Articles 7 and 8).
- Industry Compliance: The regulations set forth general compliance requirements for VASPs. These including legal adherence, customer complaint handling, and information security (Articles 10 to 15). It also includes specific guidelines for different types of providers, covering areas from asset exchange to underwriting (Articles 16 to 29).
- Transitional Provisions: Existing VASPs that have already completed a money laundering prevention compliance statement must register with the FSC within three months of the regulations taking effect and finalize their registration within nine months (Article 30).
Taiwan FSC Scraps Compliance Statement System, Introduces New Requirements
The Taiwan FSC emphasizes that once the VASP registration system is implemented, the existing compliance statement system will be abolished. This means that all service providers must register under the new regulations, regardless of their previous compliance status. The FSC advises those looking to operate as VASPs to consider delaying their applications until the new registration system takes effect to avoid potential complications.
The Shib Daily previously reported that the Taiwan FSC now allows professional investors to invest in foreign cryptocurrency exchange-traded funds (ETFs). This new regulation opens the door for institutional investors, high-net-worth individuals, and other clients with substantial assets to participate in these foreign crypto ETFs through a process called “re-entrustment.” This method allows them to access foreign cryptocurrency ETFs via Taiwanese securities firms.
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Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
