Virtual Asset Service Providers (VASPs) included in annual financial inspections for the first time, targeting 25 companies first.
Chang Tzu-min, Deputy Director of the Inspection Bureau of the Financial Supervisory Commission (FSC), stated that in the future, the FSC will conduct "ongoing inspections" of virtual asset platforms.
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Financial Inspection Expands to Virtual Asset Platforms, 25 Operators Under Inspection
According to UDN News, this year the Executive Yuan designated the Financial Supervisory Commission (FSC) as the competent authority for Taiwan's virtual currency businesses. The FSC has added "Virtual Asset Platform and Trading Business Operators" (VASP) as a focus for financial inspections in 2024.
This move signifies that the FSC will conduct professional inspections on 25 operators that have signed anti-money laundering statements to ensure compliance with anti-money laundering regulations.
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Financial Inspection Focuses on Six Major Areas with 96 Inspection Points
The FSC announced the six major areas of focus for the 2024 financial inspection, comprising a total of 96 inspection points. VASP is listed as a focus area for the first time:
Corporate Governance
Fraud Prevention
Information Security
Protection of Financial Consumer Rights
Real Estate Credit Risk Management
Virtual Asset Platform and Trading Business Operators
Anti-Money Laundering Statements as Qualification Standard
Zhang Zimin, Deputy Director of the Inspection Bureau of the FSC, further explained that virtual asset platform operators with anti-money laundering statements are considered qualified operators.
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"Continuous Inspections" Planned for Virtual Asset Platforms
By including VASP as a focus area, it will help ensure that virtual asset platforms adhere to their compliance statements. Zhang Zimin stated:
As the number of virtual asset platforms continues to grow, the FSC will conduct "continuous inspections" on these platforms in the future. Operators who have not signed anti-money laundering compliance statements will be considered in violation of the law.
The addition of the new focus area in the 2024 financial inspection demonstrates the FSC's stricter compliance requirements for virtual asset platforms and trading business operators.
The introduction of continuous inspections will ensure that operators not only declare compliance with anti-money laundering measures on the surface but also undergo in-depth scrutiny of their actual implementation.