Taiwan’s Financial Supervisory Commission (FSC) will tighten the listing of crypto assets on trading platforms as part of a new anti-money laundering regulation due to be adopted in January 2025.

FSC Securities Division Director Hsi-Ho Huang said virtual asset service providers (VASPs) in Taiwan are required to register with the agency. Failure to comply may result in criminal charges, including up to two years in prison. Under current Taiwanese laws, VASPs are now required to comply with anti-money laundering (AML) laws introduced in July 2021 until the new FSC regulation comes into force.

Huang clarified that the regulator will tighten supervision over the storage of fiat currencies and crypto assets, information security, procedures for handling customer complaints, maintaining financial records and disclosing information to customers. The official noted that cryptocurrency trading platforms must establish clear procedures for listing and delisting crypto assets, as well as take measures against unfair trading, market manipulation and falsification of trading volumes.

The regulator will also require custodial services to place client assets in trust management, as well as separate them from their own assets. Companies involved in the custody of crypto assets must engage auditors to annually compile reports on client assets.

In addition to new rules for registering crypto companies, the FSC is also developing a special bill on crypto assets. FSC Chairman Jin-Lung Peng said the regulator plans to submit legislation to the Executive Yuan, Taiwan’s highest administrative body, in June 2025.

Last year, Taiwanese authorities began studying the risks and benefits of launching cryptocurrency exchange-traded funds (ETFs) by tracking trends in these financial products in the United States.