Taiwan Introduces 4 New Laws to Combat Fraud Dealing with Virtual Asset and AML

Taiwan’s Executive Yuan has approved four new laws. These laws aim to combat fraud and enhance anti-money laundering measures.

An official post released in a local newspaper ‘abmedia’ titled “New Four Laws to Combat Fraud” is designed to strengthen the government’s ability to tackle a wide range of criminal activities, particularly in the digital asset space.

The “New Four Laws to Combat Fraud”

The new 4 laws passed to combat fraud and implement better regulations consist of four key components: the Fraud Crime Harm Prevention Regulations, the Money Laundering Prevention Law, the Technology Investigation and Security Law, and the Communications Security and Supervision Law.

When combined, these four new laws comprehensively address issues related to fraud and money laundering.

Revisions to the Money Laundering Prevention Law

The four new laws that have been implemented are not absolute.

One unique element that centers on this new legislation is the newly updated and amended Money Laundering Prevention Law. The new Money Laundering Prevention Law, having stricter penalties for non-compliance, specifically targets virtual asset service providers (VASPs) who do not comply with the law.

The updated registration requirements, special money laundering crimes, and domestic and foreign currency dealer regulations are three unique amendments to the Money Laundering Prevention Law.

First and most important are the registration requirements. If any virtual asset service providers fail to comply with the required registration, they may face penalties of up to 2 years in prison. This strict registration compliance ensures that all entities dealing with virtual assets must comply with AML regulations.

The newly amended law also mentions some special money laundering crimes. A special category for money laundering with virtual asset accounts involved and third-party payment accounts has been mentioned in the law. Prison sentences range from 6 months to 5 years, with fines up to NT$50 million, and wait for those who will be found guilty of using these accounts for money laundering.

The updated law has set strict compliance rules that must be followed by both domestic and foreign currency dealers operating in Taiwan so that their compliance with the anti-money laundering laws is checked. The rule says foreign currency dealers must complete appropriate company registration or establish branches in Taiwan.

Impact on The Crypto World

The Financial Supervisory Commission’s Deputy Chairman Qiu Shuzhen discussed the FSC’s important role and its commitment to implementing strict supervision and internal control, which includes enhanced transparency. Twenty-five virtual currency exchanges completed legal compliance statements for money laundering prevention.

The enactment of these laws is the government of Taiwan’s clear-cut battle against financial crime and market protection. The government wants to achieve this by imposing tighter regulations that are meant to prevent money laundering and fraud and, therefore, create a safer way for virtual assets exchange. As such regulations become effective, Taiwan will likely witness a bigger scope for legal protection and market stability in the virtual asset domain.

In Conclusion

The new “Four Laws to Counter Fraud” are a milestone in Taiwan’s war on financial crookery. Taiwan strives to counter the money laundering move and strictly regulates all virtual asset service providers. It is a good example for other countries that aim to tackle similar problems. Enforcement of the laws will bring about more transparency in the virtual asset market, ultimately reducing risks associated with digital asset transactions.