Taiwan's FSC requires businesses to complete AML declaration: Only three out of 16 have complied, Bitcoin ATM operators also under regulation

The Financial Supervisory Commission (FSC) of Taiwan issued a announcement stating that according to Article 17, Paragraph 1 of the "Regulations for Preventing Money Laundering and Combating Terrorism Financing for Virtual Currency Platforms and Trading Businesses," platform operators are required to make a declaration of compliance with anti-money laundering regulations in accordance with the documents, data, and methods specified by the FSC. The FSC had explained the procedures for platform operators to make the aforementioned declaration and the documents to be submitted by September 30th of last year. As of the end of November last year, out of the 16 operators who submitted declarations, only three have completed the declaration, including exchanges MAX and ACE.

Bitcoin ATM Operators to be Regulated

The Financial Supervisory Commission (FSC) stated that during recent inspections of Bitcoin automated teller machines (BTMs), operators were found to be engaging in cryptocurrency trading activities without completing the required declarations. Failure to rectify this may result in fines ranging from NT$500,000 to NT$10 million.

Banks Instructed to Politely Decline Non-Compliant Operators

The FSC has also sent letters to banks requesting them to enhance their anti-money laundering monitoring efforts and to identify whether operators have completed the necessary anti-money laundering declarations. If they are found to be non-compliant, banks should politely decline to establish business relationships or conduct transactions according to the law or contract.