Taiwan Implements Four New Laws to Address Virtual Asset Fraud and Money Laundering
Taiwan’s Executive Yuan has given its approval to four new laws aimed at combatting fraud and strengthening anti-money laundering measures. The laws, published in a local newspaper called ‘abmedia’ under the title “New Four Laws to Combat Fraud,” seek to enhance the government’s ability to address various criminal activities, especially in the digital asset sector.
The four new laws, collectively known as the “New Four Laws to Combat Fraud,” consist of 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 comprehensive approach to addressing issues related to fraud and money laundering.
One significant aspect of this legislation is the updated Money Laundering Prevention Law. It now includes stricter penalties for non-compliance and specifically targets virtual asset service providers (VASPs) that fail to adhere to the law. The updated law introduces new registration requirements and regulations for domestic and foreign currency dealers, as well as special money laundering crimes involving virtual asset and third-party payment accounts.
Failure to comply with the registration requirements may result in penalties of up to two years in prison for virtual asset service providers. Additionally, those found guilty of using virtual asset and third-party payment accounts for money laundering may face prison sentences ranging from six months to five years, along with fines of up to NT$50 million.
The updated law also imposes strict compliance rules on domestic and foreign currency dealers operating in Taiwan, necessitating appropriate company registration or the establishment of branches in the country.
The impact of these laws on the crypto world is significant. The Financial Supervisory Commission’s Deputy Chairman, Qiu Shuzhen, emphasized the FSC’s commitment to implementing strict supervision and internal control, including enhanced transparency. Twenty-five virtual currency exchanges have already submitted legal compliance statements for money laundering prevention.
The enactment of these laws demonstrates Taiwan’s determination to combat financial crime and protect the market. By imposing tighter regulations to prevent money laundering and fraud, the government aims to create a safer environment for virtual asset exchanges. As these regulations take effect, Taiwan can expect increased legal protection and market stability in the virtual asset domain.
Overall, the “Four Laws to Counter Fraud” represent a significant milestone in Taiwan’s efforts to combat financial crimes. The country is taking a proactive approach by strictly regulating virtual asset service providers and setting an example for other nations facing similar challenges. The enforcement of these laws will bring greater transparency to the virtual asset market and reduce risks associated with digital asset transactions.