Taiwan Implements 4 New Laws to Combat Digital Asset Fraud
Taiwan Implements New Laws to Combat Fraud and Money Laundering
In a move to strengthen its fight against fraud and money laundering, Taiwan’s Executive Yuan has approved four new laws. These laws specifically target criminal activities in the digital asset space, aiming to enhance anti-money laundering measures.
The legislation, collectively known as the “New Four Laws to Combat Fraud,” comprises four key areas: the Fraud Crime Harm Prevention Regulations, the Money Laundering Prevention Law, the Technology Investigation and Security Law, and the Communications Security and Supervision Law. Together, these laws provide a robust framework to address fraud and money laundering, showcasing Taiwan’s commitment to maintaining financial integrity.
One of the major focuses of these laws is the revamped Money Laundering Prevention Law. This law places greater scrutiny on virtual asset service providers (VASPs) and introduces stricter penalties for non-compliance. Notably, the law includes updated registration requirements, special money laundering crimes, and regulations for domestic and foreign currency dealers.
The registration requirements are of utmost importance. Failure to comply with the required registration may result in penalties of up to 2 years in prison for virtual asset service providers. This strict compliance ensures that all entities dealing with virtual assets must adhere to anti-money laundering regulations.
Furthermore, the amended law addresses specific money laundering crimes related to virtual asset accounts and third-party payment accounts. Those found guilty of using these accounts for money laundering may face prison sentences ranging from 6 months to 5 years, along with fines up to NT$50 million.
To ensure global compliance, the updated law establishes strict rules for both domestic and foreign currency dealers operating in Taiwan. Foreign currency dealers must complete appropriate company registration or establish branches in Taiwan to comply with anti-money laundering laws.
The Financial Supervisory Commission, through its Deputy Chairman Qiu Shuzhen, emphasizes the importance of strict supervision and internal control in implementing these laws. Transparency is enhanced, with 25 virtual currency exchanges providing legal compliance statements for money laundering prevention.
Taiwan’s adoption of the “Four Laws to Counter Fraud” sets a significant precedent in the global fight against financial misconduct. Its stringent measures serve as a model for countries facing similar challenges, offering guidance to mitigate risks associated with digital asset transactions.
In conclusion, these new laws reflect Taiwan’s firm stance against financial malpractice and its commitment to market protection. By imposing stricter regulations, Taiwan aims to create a safer environment for virtual asset exchange, promoting legal protection and market stability.