Taiwan Moves to Promote Self-Regulation Among Crypto Firms

In a recent development, 24 crypto firms in Taiwan jointly founded an association to enable them to self-regulate their activities. 

This move comes after the country’s Justice Ministry proposed amendments to the Anti-Money Laundering (AML) regulation that could result in two years imprisonment and other penalties for defaulters. 

Crypto Firms Aim to Create Fair Regulations to Boost Blockchain Sector

The new association, Taiwan Virtual Asset Service Provider (TVASP), launched on June 13 with 24 crypto firms as its founding members. According to a report from an online crypto site, BitPro’s founder and CEO, Titan Cheng, is the chairman of the association. 

Meanwhile, an XREX report on X revealed that Winston Hsiao, the chief revenue officer at XREX, is vice chair. In an X post, the association stated that it aims to facilitate the growth of the blockchain finance industry worldwide. 

As such, it will promote and facilitate fair and rigorous regulations to achieve its goals. Further, XREX stated that the association will fully cooperate with law enforcement agencies and the Ministry of Justice in combating criminal activities in the space. 

The exchange also mentioned that the TVASP will not just support the government in combating fraud but will also “contribute technology, infrastructure and industrial knowledge. 

The XREX aims to join hands in establishing an industrial “joint defense platform” and designing “international transfer rules.”

These rules, it said, will meet Taiwan’s needs standards, alliances, and networks, enabling the country to create scanning and tracking technology for its currency flow. 

Most importantly, the technology will be consistent with Taiwan’s money laundering & fraud patterns. While speaking during the announcement on June 13, an FSC director, Hsiho Huang, applauded the move. 

According to Huang, the association will foster consensus and cooperation in the industry, promoting standardization, compliance, and more development. Huang also stated that the association would bring more stability, transparency, safety, and protection to consumer rights. 

Taiwan Justice Ministry Proposed AML Amendment Triggering the VASP’s Establishment. 

Before the recent development, Taiwan’s Justice Ministry proposed amending the country’s Anti-Money Laundering regulations. The ministry’s target was mainly virtual asset service providers that were not complying with the regulations on the ground. 

According to the report, the Taiwan Executive Yuan proposed the “New Four Laws to Combat Fraud.”

The four amended regulations include the “communications security and supervision law, the “fraud crime harm prevention,” the money laundering prevention law, and the “technology investigation and security law.

While others were touched, more attention was given to the money laundering prevention law focusing on noncompliant VASPs. The law received three modifications from the previous version, making it harsher, as it involved a prison term and a steep fine. 

According to the amendment proposal, non-compliant crypto firms will pay up to $1.5 million in fines plus a two-year jail term. For now, reports suggest that Taiwan’s Legislative Yuan and the national parliament will review the amendments before they go into effect.