Taiwan Proposes AML Amendments, Seeks Jail Terms and Fines for Non-Compliant Crypto Service Providers
Taiwan authorities announced on Thursday that they intend to punish cryptocurrency firms that fail to abide by its anti-money laundering (AML) laws.
In response to fraud and money laundering risks in the virtual asset landscape, Taiwan’s Ministry of Justice has proposed several amendments to the city’s existing AML laws, suggesting hefty fines and prison terms for non-compliant service providers.
The Ministry of Justice has introduced amendments that mandate domestic and overseas crypto firms operating in Taiwan to register for AML compliance. Failure to comply could result in imprisonment for up to two years and fines reaching $1.5 million.
Key components of the proposed amendments include regulations targeting fraud prevention, money laundering prevention, technology investigation and security, and communications security and supervision.
Notably, a major change in the new money laundering prevention law targeting VASPs outlines harsher penalties for noncompliance. The revised law introduces stricter registration requirements and limitations for domestic and international currency dealers.
Under the proposed amendments, VASPs risk imprisonment if they provide services without proper registration. Additionally, a new legal category has been introduced addressing money laundering offenses related to third-party payment accounts and virtual asset accounts.
According to the draft plan, overseas crypto platforms must establish local entities and apply for AML registration to avoid criminal penalties.
Additionally, the proposed amendments will include cryptocurrency within existing AML laws. Offenders using cryptocurrency for money laundering could face prison terms ranging from six months to five years, alongside fines of up to
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