Taiwan is becoming more strict with crypto service providers that are disobedient to anti-money laundering (AML) regulations. The Ministry of Justice suggests amendments which might lead to fines of up to $1.5 million and 5 year imprisonment on the companies that don’t stick to the rules.
The proposed changes have been developed to minimize instances of fraudulent use, money laundering, and cybercrime. Notably, there will be a registration requirement for crime-prevention registration against the money launderers for VASPs. A failure to do so may turn into criminal charges.
This move comes amid the increasing concerns about crypto-related fraud and Money Laundering claims. Taiwan’s Financial Supervisory Commission (FSC) had stated their intention to regulate the digital currency space by September of 2024 as part of their regulatory plan.
Taiwan’s legislation to punish money laundering of crypto firms via criminal procedure is a major step towards extreme regulation in the sector. This might bring into existence a trusted crypto space and encourage more investments, but also make sure that the regulations are balanced and are not too tight to discourage innovation.
Also Read:Base Emerges as Leader in SocialFi According to Franklin Templeton
