Taiwan Introduces New AML Regulations for Crypto Firms with Deadline for Compliance by September 2025

Taiwan Introduces New AML Regulations for Crypto Firms with Deadline for Compliance by September 2025

Taiwan's Financial Supervisory Commission (FSC) has introduced new anti-money laundering (AML) regulations for virtual asset service providers (VASPs), setting a compliance deadline of September 2025. The regulations, announced on October 3, 2024, aim to strengthen the country's financial security and protect customer assets in the evolving crypto sector. Crypto firms that fail to comply by the deadline could face severe penalties, including fines of up to 5 million New Taiwan dollars (approximately $155,900) or a two-year prison sentence.

The new AML rules require VASPs to meet higher management standards, ensuring that leadership teams possess stricter qualifications. Firms will also need to submit annual risk assessment reports to demonstrate their ongoing adherence to Taiwan’s financial security regulations. The FSC encourages companies to wait until the new system is fully implemented on January 1, 2025, before registering to avoid multiple submissions.

In addition to these AML regulations, Taiwan is expanding its engagement in the digital asset sector. On September 30, 2024, the FSC approved professional investors to participate in foreign virtual asset exchange-traded funds (ETFs), aligning Taiwan with other major financial centers like Hong Kong and Singapore. The move limits access to these high-risk products to professional investors, ensuring controlled exposure to the volatility of digital assets.

By June 2025, the FSC is expected to present a broader regulatory proposal for digital assets, with a draft bill likely to be completed by the end of 2024. This legislation will further shape Taiwan's crypto landscape, following earlier amendments aimed at stabilizing the market and protecting investors.