XREX: Far Eastern International Bank halts USD deposits and withdrawals in compliance with FSC instructions to strengthen anti-money laundering efforts

Due to the directive issued by the Financial Supervisory Commission (FSC) in Taiwan, aiming to strengthen the business relationships and transaction monitoring between banks and virtual currency platforms to enhance anti-money laundering measures. This move has posed significant challenges for many financial institutions and virtual currency platforms, and Far Eastern International Bank has already made adjustments to its business with XREX.

Financial Supervisory Commission's New Regulations Promote Healthy Trading Environment

On January 10, 113, the Financial Supervisory Commission issued a directive to regulate the business cooperation and transaction monitoring between banks and virtual currency platforms. The main purpose of this move is to strengthen banks' anti-money laundering controls and ensure transparency and legality in the trading process. These new regulations require banks and virtual currency platforms to adhere to the "Regulations for Establishing Business Relationships and Transaction Monitoring for Banks and Virtual Currency Platforms and Trading Businesses."

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Taiwan's Financial Supervisory Commission officially announced the VASP guidelines, regulating both "individual currency dealers" and "overseas currency dealers."

Far Eastern Bank Adjusts Services in Response to Financial Supervisory Commission's Guidelines

XREX announced today that, in order to comply with the Financial Supervisory Commission's guidelines and the self-regulation rules of the Bankers Association, Far Eastern Bank will suspend the USD deposit and withdrawal services for "Taiwanese nationals and individuals" using XREX starting from January 30. This adjustment will affect the trading methods of some users, but XREX stated that they will continue to provide other stable and reliable trading options.

Impact and Future Business?

XREX mentioned that this adjustment mainly affects Taiwanese users conducting USD transactions through Far Eastern Bank. XREX recommends these users to switch to Customers Bank in the United States for transactions to ensure smooth trading. TWD transactions remain unaffected and continue to operate normally. XREX also stated that once Far Eastern Bank provides corresponding USD trust services that comply with the relevant regulations, they will consider resuming cooperation with the bank.

Taiwan's Cryptocurrency Industry Faces Frequent Regulatory Actions

Although the adjustment by XREX may inconvenience some users, it reflects the direction of the entire Taiwanese financial industry towards greater transparency and compliance. In recent years, there have been several law enforcement actions against the cryptocurrency industry that was previously in a financial gray area:

• Is it the first case of a cryptocurrency exchange transforming after being involved in money laundering? BITGIN will clear individual accounts and focus on corporate accounts
• ACE flagship exchange embroiled in money laundering scandal: FSC takes action, imposing a maximum fine of ten million
• JPEX case | The Taipei District Prosecutors Office has listed Chen Ling Jiu as a defendant in a criminal case, Tony Zhang Dongying has posted bail of 1.5 million and is restricted from leaving the country, the assistance in promoting media is still under investigation

In response to these events, the VASP Association Preparatory Group has also declared its commitment to setting standards once established.