Taiwan is tightening regulations on crypto exchanges, is there a pressure from China?
Just earlier this month, Taiwan’s government has officially tightened up anti-money laundering (AML) policies targeted to the cryptocurrency industry, requiring all crypto exchanges to monitor, investigate and prevent any illegal transactions using digital currencies.
Additionally, according to the official Anti-Money Laundering Control Act and Terrorism Financing Prevention Act, Taiwanese Financial Supervisory Commission (FSC) now has the authority to bar anonymous crypto transactions.
According to the new regulations, the FSC can demand exchange operators to require their customers to register using their real names. If they fail to do so, or preserve any other type of suspicious behavior, the Commission can block them and report to the law enforcement authorities. Additionally, Taiwan is also on its path to release a regulatory draft on Initial Coin Offering (ICO) by 2019.
Since this regulatory set has been implemented amidst the furious trade war between U.S. and China, many experts see possible pressure from China as the reason for Taiwan to tighten up the playing field for crypto. According to political analysts, in this type of situation even slightest ‘public’ disagreement on important subjects affecting both government and society could lead to even more intensified tension between the U.S., Taiwan and China, which would lead to even more serious international conflicts. And even though both events – tightening up crypto regulations in Taiwan and China – come at the same time, there’s still more ‘open space’ for crypto in Taiwan. Faith in a more prosperous future mainly lies in the fact that parliamentary coalition has been formed specifically for releasing a set of regulatory standards on crypto and, additionally, there are also self-regulatory organizations focused on blockchain and crypto, formed by the Taiwanese government in order to develop a set of optimal parameters for the whole industry to prosper for the years to come.