Economy

Taiwan Targets Crypto Money Laundering With New Rules

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Updated

By TaiwanPlus

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Taiwan’s government is moving to tighten rules around cryptocurrency and money laundering. The Cabinet has approved changes to the Anti-Money Laundering Act that would make it illegal to provide digital asset services without authorization. The proposed changes also introduce punitive measures for firms that issue stablecoins or provide third-party financial services without required paperwork. In cases involving money laundering, violations could carry prison time. The bill now moves to the legislature for approval. The changes are part of the government’s effort to crack down on cryptocurrency use in money laundering and close potential loopholes in the financial system overall.

New Cryptocurrency Legislation

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REPORTER:  
Taiwan's government is taking steps to crack down on the use of cryptocurrency in money laundering.

The Cabinet has approved changes to Taiwan's Anti-Money Laundering Act. These updates would criminalize providing digital asset services without authorization. The changes include punitive measures for firms that issue stablecoins or provide third-party financial services without proper paperwork. That could mean prison time for cases involving money laundering. The bill will now move to the legislature for approval.  
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New Virtual Asset Legislation

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REPORTER:  
Unauthorized virtual asset services and stablecoin issuance will be criminalized if a new cabinet proposal is approved.

The law change allows Taiwan’s money laundering law to be used against providers of virtual asset or third-party payment services who lack registration or do not implement money laundering prevention.

Heavy offenses could incur prison sentences of up to 10 years.

The proposal also defines beneficial owners as those who actually control transactions or assets. And it creates a framework to share information between agencies and operators.

In June, legislators passed Taiwan’s new virtual assets law. That law promotes use of stablecoins while setting heavy punishments for financial crime.  
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