Cryptocurrency transactions are getting a policy makeover in Taiwan after the country\u2019s top financial watchdog agreed to curb illegal transfers and crackdown on those in violation of the law.<\/p>\n
As reported by Asia Times<\/i> on Nov. 5, Taiwan\u2019s Financial Supervisory Commission (FSC) has received full authority to exercise power on virtual currency transactions. Last week, the Legislative Yuan, Taiwan\u2019s highest legal authority, passed amendments to existing laws governing crypto-payments.<\/p>\n
Two amendments made to the Terrorism Financing Prevention Act and Money Laundering Control Act mean the FSC can now demand virtual currency exchanges to conduct business in a strict, highly regulated environment that follows thorough Know-Your-Customer (KYC) and Anti-Money Laundering (AML) laws.<\/p>\n
Taiwanese crypto-exchanges will necessarily require customers to submit their \u201creal names\u201d before accessing the platform, while banks can refuse exchange transactions that are deemed \u201canonymous,\u201d or which cannot be tracked easily. Moreover, financial institutions have an \u201cobligation\u201d to report any illicit or suspicious transactions to the FSC.<\/p>\n
Crypto enterprises found in violation of the amended provisions will be fined an amount greater than 50,000 yuan (~$7,256) but less than one million yuan (~144,000). Interestingly, any financial institution found breaking the rules will be fined upwards of 500,000 yuan (~$72,256) but less than ten million yuan (~$1,440,000)<\/p>\n