Taiwan Executive Yuan proposes "Anti-Fraud New Four Laws": Foreign currency businesses must establish local presence, unregistered operations face up to two years imprisonment, money laundering carries a penalty of up to five years

The Executive Yuan of Taiwan recently passed a new regulation called the "Anti-Fraud New Four Acts," aimed at further strengthening the crackdown on fraudulent activities and strictly regulating anti-money laundering measures. This set of laws includes the Prevention of Crime Act, the Anti-Money Laundering Act, the Technology Investigation and Protection Act, and the Communications Protection and Surveillance Act, with the goal of enhancing the government's overall ability to prevent various criminal activities.

New Regulations on Anti-Money Laundering Law

The amendments to the Anti-Money Laundering Law specifically target virtual asset service providers, with three main directions of amendment. Firstly, any virtual asset service provider who fails to complete the anti-money laundering registration may face up to 2 years of imprisonment. Secondly, the law introduces new specific money laundering offenses for using virtual asset accounts and third-party payment accounts as money laundering tools, with a sentence ranging from 6 months to 5 years and a maximum fine of 50 million New Taiwan Dollars.

Strengthening the Supervision of Domestic and Foreign Currency Dealers

A major highlight of this legislation is the strict management of domestic and foreign currency dealers. According to the newly amended Anti-Money Laundering Law, not only do domestic currency dealers need to register for anti-money laundering, but foreign currency dealers who wish to operate in Taiwan must also establish a branch in Taiwan or complete the corresponding company registration. This demonstrates the Taiwanese government's increasing demand for transparency and legitimacy in virtual asset trading.

Role of the Financial Supervisory Commission and Future Prospects

Vice Chairperson of the Financial Supervisory Commission, Shu-Chen Chiu, mentioned that the Financial Supervisory Commission will act as the competent authority for virtual assets, not only rigorously supervising investments and payments of currency dealers but also strengthening internal management and control through the participation of accountants. Furthermore, to enhance transparency, 25 virtual currency exchanges have already completed the legal compliance statements for anti-money laundering.

Through the implementation of these new regulations, the Taiwanese government demonstrates its firm determination to combat financial crimes and enhance the security of the financial market. In the future, with the gradual enforcement and implementation of regulations, it is expected to effectively curb money laundering and fraudulent activities, bringing greater legal protection and market stability to the virtual asset market.