Taiwan is set to combat anonymous crypto transactions
Taiwan’s Legislative Yuan passed a proposal that mandates cryptocurrency transactions to fall under the purview of existing Anti-Money Laundering (AML) laws.
The proposed amendments to the Money Laundering Control Act and the Terrorism Financing Prevention Act enable Taiwan’s Financial Supervisory Commission (FSC) to gather information of cryptocurrency investors from trading platforms, according to the report published by Focus Taiwan.
Among the new regulations imposed by the legislative proposal are the demand to operators of virtual currency to implement “real-name” systems that require users to register under their legal names, and requirement of the banks to report “suspicious” anonymous transactions. According to Taiwan’s Ministry of Justice (MoJ), these amendments will help to align the country’s laws with the international anti-money laundering practice.
In light of a recent regulatory scrutiny imposed to crypto by neighboring China, this move comes rather in favor of cryptocurrency, financial analysts say. The legislation was prepared in light of the proposal by Taiwanese lawmaker Jason Hsu, who advocated against calls for a cryptocurrency ban and instead suggested to enforce an alternative solution through establishing a similar framework used by the EU’s Anti-Money Laundering Directive. Hsu further added that cryptocurrency has a “huge opportunity for growth in the future,” and pointed that Taiwan should follow Japan’s suit on a path of treating crypto as a highly-regulated, highly monitored industry, same as securities.
According to the report issued by Taiwan’s FSC in October, they’re currently working on the guidelines to regulate initial coin offerings (ICOs) in the country.