The Financial Supervisory Commission (FSC) announced last week that it has drafted regulations for Virtual Asset Service Provider (VASP) Anti-Money Laundering (AML) registration. The FSC will also revise the VASP Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) regulations. These regulations are expected to be announced shortly, opening a period for public feedback.
The Taiwan Virtual Currency Association has welcomed this development, emphasizing that the legalization of VASP regulations is a significant milestone. The association expressed its commitment to collaborating with the FSC and assisting VASP operators in complying with the new regulations.
Draft Regulations and Key Points
The draft VASP registration regulations outline details regarding VASP business categories, registration procedures, and requirements, as well as management and transitional provisions. Key aspects include:
Mandatory AML registration for VASPs.
Specific guidelines for various categories of VASP operators, including virtual asset exchangers, trading platforms, transfer services, custodians, and underwriters.
A transitional provision requiring VASPs who have already completed AML compliance declarations to register with the FSC within three months of the registration system's implementation.
Completion of registration is required within nine months of the regulations' effective date. The existing compliance declaration system will be abolished upon the registration system's implementation.
Revised VASP AML/CFT Regulations
Key revisions to the VASP AML/CFT regulations include:
Explicitly defining the scope of the regulations to include entities registered under the VASP registration regulations.
Requiring VASPs to submit annual risk assessment reports to the FSC.
Mandating that VASPs establish internal controls and audit mechanisms based on AML/CFT regulations, the VASP registration regulations, and the Taiwan Virtual Currency Association's self-regulatory guidelines.
Positive Response from the Industry
The Taiwan Virtual Currency Association and VASP operators, including the cryptocurrency exchange Bito, have expressed their support for the new regulations, viewing them as a step towards greater transparency and protection for investors.
Bito, which has already implemented comprehensive internal controls, expressed its intention to fully cooperate with the registration process and further strengthen its internal controls to comply with the regulations.
The VASP registration and regulatory framework will contribute to a more secure and regulated cryptocurrency industry in Taiwan.
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