The Financial Supervisory Commission (FSC) of Taiwan has introduced new Anti-Money Laundering (AML) regulations that will require full compliance from all local virtual asset service providers (VASPs) by 2025. The updated AML measures, released on Oct. 2, aim to crack down on illicit activities in the crypto sector and align Taiwan’s regulatory framework with global standards.
The new regulations mandate that all crypto firms operating in Taiwan must register with the government by September 2025. Failure to comply could result in severe penalties, including a two-year prison sentence or fines of up to 5 million New Taiwan dollars ($155,900). Effective Jan. 1, 2025, these new rules will replace the existing system, meaning that even companies previously adhering to the old AML standards will need to meet the updated requirements.
As part of the new compliance measures, VASPs must prepare an annual risk assessment report and submit it to the respective government agency. The FSC has also advised VASPs to wait until the new registration system is implemented before submitting their documents to avoid reapplying under different rules.
The FSC is expected to submit a new proposal for crypto-related laws by June 2025, with a draft anticipated by the end of 2024. These upcoming regulations aim to provide greater clarity and stability for the rapidly evolving crypto sector in Taiwan.
In addition to the new AML regulations, Taiwan has also taken steps to expand its participation in the crypto market. On Sept. 30, the FSC opened the digital asset exchange-traded fund market to local professional investors. This decision is intended to boost Taiwan’s financial market competitiveness and aligns with similar efforts by Hong Kong and Singapore to strengthen their foothold in the digital asset space.