Taiwan would soon introduce new regulations to strengthen the anti-money laundering provisions for cryptocurrency exchanges that are operating in the country.
As per the experts, the new rules will not only administer the crypto industry but also would provide clarity and certainty regarding it. Soon, the world might see Taiwan as a hub for crypto startups.
The Financial Supervisory Commission (FSC) has recently notified that the country will impose the new regulation on July 01. The crypto exchanges and other platforms that offer security tokens would be categorized as an institution which is governed by the Money Laundering Control Act (MLCA).
Further, it has been reported that if any of the exchanges processes a transaction of over $17,800 in cash, then those platforms would have to report those transactions. Also, it would be important for all the customers on the exchanges to complete their know-your-customer (KYC) requirements to authenticate their identity.
A month ago, the highest administrative organ of Taiwan, Executive Yuan, released a circular stating that the crypto trading platforms and the exchanges in the country would represent the virtual currency platforms of the MLCA.
People, who know about cryptocurrencies, are not surprised by the government’s decision, in fact, they are appreciating it.
Jason Hsu, a former legislator in Taiwan, recently, while supporting the government’s decision of imposing new regulations, said, “I think this is a right step towards the normalization of the crypto industry.” It is to be noted that in the year 2018, Hsu was a member of taskforce that amended the MLCA. He further added. “I’m totally aware of the importance for us to create a guideline for virtual assets.”
Hsu believes that if the regulations are formed carefully then rather being a threat to existing businesses, the crypto industry would become the strength of the business environment. He further stated that the government should see this situation as an opportunity for the country to attract new talents.
However, the operations of major exchanges would not get affected by the new rules, as those companies have already established anti-money laundering mechanisms.