Binance, the cryptocurrency exchange, intends to obtain registration in Taiwan under the Anti-Money Laundering Act. The Block reports, citing its own sources.
The AML regulatory framework remains on the island as the sole regulatory document for virtual asset service providers (VASPs). In March, authorities announced adoption of sweeping rules for the industry.
According to the publication, a representative of the Financial Supervisory Commission (FSC) at a closed session with VASPs informed attendees of the plans of the largest crypto exchange.
Binance registered in May in Taiwan a company named Binance International Limited Taiwan Branch (Seychelles), according to the реестру of the Ministry of Commerce. The authorised capital is NT$30 million (~$944,000). The listed activities include software services, data processing, payments, venture investment and other activities.
The FSC declined to confirm Binance’s request and noted that offshore crypto platforms operating in Taiwan must comply with local AML rules. According to the department’s spokesperson, the regulatory norms for the industry will be published by the end of September.
“FSC plans to require VASPs to hold their cryptoassets separate from client funds and to undergo an annual audit by accounting firms,” said The Block’s director of the Taiwan Fintech Association, Kevin Chen.
In his view, the standard will be difficult to implement, as auditors are reluctant to take on clients tied to cryptocurrencies. It is not about some specific accounting, but rather a lack of understanding and knowledge of digital currencies, Chen explained.
In 2022, the FSC banned the purchase of crypto assets using bank cards.