Taiwan's VASP Anti-Money Laundering Declaration Adds Another Operator, Will It Still Be Valuable After Registration?

At present, the Financial Supervisory Commission (FSC) in Taiwan has only one list of regulated virtual currency operators, which have passed the anti-money laundering statement. Following the removal of Binance exchange, a new operator, "Absolute Digital Limited," was added on September 26. It is reported that the person in charge of this company is the same individual behind the once-popular NFT project Zombie Club in Taiwan. However, the specific business activities of this company have not yet been clarified. The value of the anti-money laundering statement seems to be highly regarded, but is it really worth it?

Industry Insiders: Statement Qualifications are in High Demand, Registration System is the Real Deal

After the release of the guiding principles for virtual currency operators in Taiwan, various industry players are gradually gaining a clearer understanding of what "compliance" entails. Anti-money laundering (AML) statements have become a sweet burden - on one hand, they represent a certain level of recognized compliance qualification, while on the other hand, for some operators, they bring a heavy burden of compliance costs.

Both domestic and foreign operators looking to establish themselves in Taiwan are exploring the possibility of acquiring qualifications from operators with AML statements. We have also seen many existing operators changing their responsible persons, indicating the high demand for this qualification.

However, AML statements may not be as valuable as they seem. In September, the Financial Supervisory Commission of Taiwan, the Virtual Asset Service Providers (VASP) Platform, and the Exchange Business Association will introduce a self-regulatory draft that will set more compliance standards and penalties for VASPs. More importantly, the Financial Supervisory Commission announced in April this year that it will move towards a registration system that requires compliance with specific capital and cybersecurity standards.

Once the registration system is implemented, the current statement qualifications will inevitably be reevaluated, and self-regulatory standards will clearly classify operators with varying levels of detailed regulations. Obtaining an AML statement qualification now does not guarantee future registration qualifications.