Individuals using digital assets for money laundering in Taiwan now face prison terms ranging from six months to five years, as stipulated by new anti-fraud legislation.
According to ABMEDIA, Taiwan has recently passed new regulations. Any cryptocurrency service provider that fails to complete money laundering prevention registration will face up to 2 years in prison. Those who use virtual asset accounts as money laundering tools could face a…
— Wu Blockchain (@WuBlockchain) May 9, 2024
The package includes:
- The Fraud Prevention and Control Act.
- The Anti-Money Laundering Act.
- The Technology Investigation and Protection Act.
- The Communications Protection and Supervision Act.
According to the documents, local and foreign VASP must obtain AML registration. Executives of organizations violating this requirement face up to two years in prison.
Using virtual asset accounts and third-party payment accounts for money laundering will result in penalties ranging from six months to five years in prison and fines up to 50 million TWD ($1.54 million).
The FSC will begin acting as the supervisory authority.
It is reported that 25 local trading platforms have already submitted applications to comply with the specified requirements.
In April 2024, the Taipei District Prosecutor’s Office sought 20-year sentences for four main suspects in a fraud and money laundering case involving the cryptocurrency exchange ACE Exchange.
In January, Taiwanese police arrested David Pan and 14 accomplices on suspicion of promoting worthless digital assets, causing damages exceeding $32.3 million.