Taiwan Finalise New Regulations for Offshore Crypto Exchanges
Taiwan is set to disclose new obligations for offshore crypto exchange companies, with rigid Anti-Money Laundering (AML) regulations to prevent the virtual assets industry from money laundering and terrorist financing.
Taiwan’s Financial Supervisory Commission (FSC) has developed the latest rigid regulations to supervise offshore crypto exchange wallets. The draft of these guidelines is expected to be launched by the end of this month. These new regulations shift Taiwan’s approach to dealing with digital assets and enhance transparency by protecting the investors in the crypto trading platforms and banning digital assets wallets that do not comply with regulations.
The new rules are intended to make digital asset listing, delisting, and issuance more transparent. Regulatory authorities also aim to establish a robust mechanism to identify the entities’ of crypto wallets, including the service providers and the customers using the wallets for the transaction. The effects of these regulatory changes may be extensive for customers of foreign exchanges as well as for those exchanges themselves. Exchanges will only be allowed to operate in Taiwan if they follow the FSC’s rules, which include AML guidelines.
Taiwan’s decision to impose stricter rules on offshore cryptocurrency exchanges is considered an aggressive attempt to reduce the risks of money laundering, fraud, and other illegal acts that are frequently connected to the crypto business. These FSC’s guidelines were a blueprint for other nations to combat money laundering and regulate cryptocurrency under AML regulations. Considering the recent failure of major cryptocurrency exchanges, the need for advanced sanctions compliance increases for all countries, and they can follow the footprint of Taiwan to supervise offshore crypto exchanges.
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