As Taiwan gears up for releasing draft Initial Coin Offering (ICO) regulation by June 2019, it has made amendments to existing anti-money laundering (AML) and counter terrorism financing (CFT) laws to place new requirements on crypto exchanges. The new amendments to the said acts will align the country more closely with international AML standards, as per Taiwan’s Ministry of Justice (MoJ). It stated that by ensuring good CFT and AML practices, Taiwan will help foster a compliance culture and mindset among local institutions and businesses.
Initial Coin Offerings (ICOs) have been the reason for creating tension throughout international jurisdictions that are keen on averting customer exposure to fraud. Mainland China has banned the practice of ICOs altogether. However, Taiwan’s Financial Supervisory Commission (FSC) is in the process of drafting a set of standards for ICOs. It intends to make tokens as liquid as stocks and easier to invest in.
The Financial Action Task Force (FATF) implemented changes to its CFT and AML standards for firms involved in crypto-related activities, such as crypto exchanges and providers of financial services for ICOs, last month. The Chairman of FSC, Wellington Koo who was speaking at a meeting of the Legislative Yuan Finance Committee on October 22, said that the more they regulate, the more this new economic behavior wanes, as reported on Cointelegraph.
The FSC can now ask the operators of crypto exchange platforms to implement “real-name systems”. According to this new system, users need to register their real names in accordance with the new provisions of the law. The MoJ stated that these new amendments not only align Taiwan more closely with international standards, but they will also make the country’s AML system more complete and build a culture that values legal compliance.
The Money Laundering Control Act was amended in 2016. However, it failed to fully prevent related financial crimes in crypto exchanges. The ministry according to the MoJ expects the fresh amendments to help Taiwan perform better in its upcoming evaluation by the Asia/Pacific Group on Money Laundering (APG). The evaluation will take place from November 5 -16, as reported on Focus Taiwan.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]