Taiwan is set to become the latest country to introduce clearly defined cryptocurrency regulations. The new crypto regulations are being designed to combat money laundering activities in the country.
Anti-Money Laundering Cryptocurrency Regulations
Qiu Taisan, the Justice Minister of the country says the laws should be in place by November 2018. He made this known during a recent conference held by the Taiwan Financial Services Coalition (FSC). Taiwan will play host to the Asia Pacific Group on anti-money laundering (AML) later in the year. The group is expected to evaluate the country’s existing AML laws. Justice Minister Taisan wants the new crypto laws to be in place before then.
The Taiwan Central Bank, as well as the Ministry of Interior via its Bureau of Investigation, will be in charge of regulating the crypto market. The FSC invited a couple of cryptocurrency exchange platforms earlier in the month to discuss their operations in the country. Yang Chin-long, the Governor of the country’s central bank, had earlier called for AML laws to be enacted for bitcoin.
The main focus of Taiwan’s new cryptocurrency regulations will be on preventing money laundering. This was made known by Gu Lixiong, the chairman of the Financial Supervision and Management Commission. As a result, banks in the country have been instructed to tag bitcoin accounts as “high-risk clients.” Banks and other financial institutions have also been instructed to educate their customers on the dangers of cryptocurrency investments.
No Imminent Cryptocurrency Ban
The threat of money laundering and terrorist financing continues to be a pressing issue as far as cryptocurrencies are concerned. However, there are no immediate plans to ban cryptocurrencies in Taiwan. As the crypto landscape in the Asian theater continues to evolve, more countries are abandoning their ambivalent stance for more concrete positions on cryptocurrency. Thailand, China, and India have come down hard on digital currencies while Japan and Singapore appear to be more crypto-friendly.
Wellington Koo, the chairman of the FSC said the country will not emulate China by banning cryptocurrencies. The Chinese crypto crackdown has seen the influx of crypto funds into Taiwan which still remains relatively liberal towards the market.
Do you agree with Taiwan’s stance on cryptocurrency? Do you believe cryptos can be exploited for money laundering and terrorist financing? Please let us know your thoughts in the comment section below.
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