Taiwan has become the latest Asian country to strengthen cryptocurrency regulations, as the government passed amendments to anti-money laundering legislation that removes the right to anonymity for cryptocurrency users in the country. The amendments are part of an ongoing attempt to regulate cryptocurrency as a whole in Taiwan and bring it in line with other financial assets rather than simply banning it outright, in a move which echoes those of Hong Kong and Japan recently.
End of Anonymity
The amendments made by the government are to the Terrorism Financing Prevention Act and the Money Laundering Control Act, giving the Taiwanese Financial Supervisory Commission (FSC) the authority to crack down on anonymous virtual currency transactions and demanding that cryptocurrency platforms implement a ‘real name’ system, bringing an end to anonymous accounts in the country. Banks will also have the power to reject anonymous digital currency transactions and report any suspicious activity to the FSC. Large fines will be levied against those who break the new laws, with financial institutions facing fines of at least $72,000 if they do so.
Friendly Approach
Unlike its neighbor China, who have been clamping down on cryptocurrency since 2013, Taiwan has a positive overall view of the technology, and this type of legislation is to be expected from a country that wants to encourage the legal growth of the asset class. In October 2017, amid China’s crackdown on cryptocurrencies, Taiwan announced it would not ban ICOs and cryptocurrencies in general, stating that they represented “a huge opportunity for growth in the future”. Further legislation is expected regarding the framework the government is implementing, but it seems that, like Japan, Taiwan sees the positives in the industry and wants to be towards the front of the queue for adoption.
