Regulation
Taiwan strives to promote self-regulation among crypto companies
Recently, 24 Taiwanese crypto companies jointly founded an association to enable them to self-regulate their activities.
The move comes after the country’s Justice Ministry proposed amendments to anti-money laundering (AML) regulations that could result in two years’ imprisonment and other penalties for violators.
Crypto Firms Aim to Create Fair Regulations to Boost Blockchain Industry
The new association, Taiwan Virtual Asset Service Provider (TVASP), was launched on June 13 with 24 crypto companies as founding members. According to a report from an online crypto site, BitPro founder and CEO Titan Cheng is the president of the association.
In the meantime, an XREX report on X revealed that Winston Hsiao, chief revenue officer at XREX, was its vice president. In an X postthe association said it aims to facilitate the growth of the blockchain financial sector worldwide.
As such, it will promote and facilitate fair and rigorous regulation to achieve its objectives. Additionally, XREX said the association will fully cooperate with law enforcement and the Department of Justice in combating criminal activities in space.
The exchange also mentioned that the TVASP will not only support the government in the fight against fraud, but will also “bring in technologies, infrastructure and industrial knowledge.”
The XREX aims to unite to establish an industrial “common defense platform” and design “international transfer rules”.
These rules, according to the statement, will meet Taiwan’s needs for standards, alliances and networks, allowing the country to create technology for digitizing and tracking its monetary flows.
More importantly, the technology will comply with Taiwan’s anti-money laundering and anti-money laundering policies. fraud patterns. In his speech at the June 13 announcement, FSC director Hsiho Huang applauded the move.
According to Huang, the association will foster consensus and cooperation in the industry, promoting standardization, conformity and further development. Huang also said the association would bring more stability, transparency, security and protection to consumer rights.
Taiwan’s Ministry of Justice proposed an AML amendment triggering the creation of the VASP.
Prior to this recent development, Taiwan’s Ministry of Justice had proposed changes to the country’s anti-money laundering regulations. The ministry’s target was mainly virtual asset service providers who did not comply with regulations in force on the ground.
According to the report, the Executive Yuan of Taiwan propose the “Four new laws to fight against fraud”.
The four amended regulations include the “Communications Security and Surveillance Act,” the “Fraud Damage Prevention Act,” the Money Laundering Prevention Act, and the “Technology Investigation and Security “.
While others have been affected, more attention has been paid to the Prevention of Money Laundering Act, focusing on non-compliant VASPs. The law received three changes compared to the previous version, making it more severe, as it provided for a prison sentence and a large fine.
Under the proposed amendment, non-compliant crypto companies will pay up to $1.5 million in fines plus a two-year prison sentence. For now, reports suggest that Taiwan’s Legislative Yuan and national parliament will review the amendments before they take effect.
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