Last Friday, Taiwan’s Legislative Yuan enacted a legislative proposal that authorizes cryptocurrency transactions to comply with current money laundering laws.
The revisions brought to the Terrorism Financing Prevention Act and Money Laundering Control Act allows Taiwan’s financial regulator, the Financial Supervisory Commission (FSC) to gather KYC information regarding cryptocurrency investors from trading platforms, according to a report from Focus Taiwan.
The FSC now requires operators of cryptocurrency platforms start using “real-name system’s” that expect users to register their real names.
Also, banks are demanded to report all ‘suspicious’ transactions that are anonymous to Taiwan’s financial regulator. The country’s Ministry of Justice says the amendments align Taiwan’s laws with international anti-money laundering norms.
The revisions come after a proposal by Jason Hsu, Taiwanese lawmaker and congressman from Taiwan’s Nationalist Party who in October attempted to implement a framework similar to the one used by the European Union’s Anti-Money Laundering Directive.
The lawmaker has a strong stance against calls for a cryptocurrency ban and recommended the country takes a different position to China’s and South Korea’s hostile stances.
During a parliamentary session last year, Hsu said:
“Just because China and South Korea are banning, doesn’t mean that Taiwan should follow suit – there is a huge opportunity for growth in the future,(…). We should emulate Japan, where they treat cryptocurrency as a highly regulated, highly monitored industry like securities.”
At the end of October, Wellington Koo, the Chairman of Taiwan’s FSC revealed that the financial regulator is drafting guidelines for regulating Initial Coin Offerings in the country.
As reported in October, the chairman of Taiwan’s FSC has also revealed that the regulator is preparing guidelines for regulating initial coin offerings (ICOs) in the country.