Regulation
Taiwan cracks down on crypto with prison sentences for AML violations
Taiwan is getting stricter with crypto service providers disobeying anti-money laundering (AML) regulations. The Department of Justice suggests amendments which could result in fines of up to $1.5 million and 5 years in prison for companies that violate the rules.
The proposed changes have been developed to minimize instances of fraudulent use, money laundering and cybercrime. In particular, there will be a registration requirement for the registration of crime prevention against money launderers for VASPs. Failure to do so may result in criminal prosecution.
The move comes amid growing concerns over crypto-related fraud and money laundering allegations. Taiwan’s Financial Supervisory Commission (FSC) has declared its intention to regulate the digital currency space by September 2024 as part of its regulatory plan.
Taiwanese legislation to punish money laundering by crypto companies through criminal proceedings is a major step toward extreme regulation of the sector. This could create a reliable crypto space and encourage more investment, but also ensure that regulations are balanced and are not too strict to discourage innovation.
Read also:Base emerges as SocialFi leader according to Franklin Templeton