The regulator has warned that virtual asset service providers (VASPs) operating illegally in Taiwan could face up to two years in prison or a fine of up to NT$5 million ($155,900). Crypto companies must submit a one-page form to the agency detailing their business. Companies are also required to implement an accounting and financial audit management system.
Any changes in business or information provided must be reported to the Over-the-Counter (OTC) Trading Center within five business days. Currently, 26 cryptocurrency service providers have received permission from the department to operate in Taiwan.
According to FSC requirements, crypto exchanges must monitor any questionable transactions. When identifying suspicious customers, crypto service providers should collect the names and bank details of these users, as well as verify the location by IP addresses.
Additionally, crypto exchanges must check how often customer information changes. Crypto exchanges operating in Taiwan are required to check whether clients are using multiple addresses with the same IP address – between which they can move their assets.
The reduction in registration deadlines for crypto services came after the FSC fined crypto exchanges MaiCoin and BitoPro for violating AML rules and Know Your Customer (KYC) procedures, as well as failing to monitor suspicious transactions and improper reporting.
In November, the FSC tightened the listing of digital assets on trading platforms, the custody of fiat and crypto assets, and the maintenance of financial records to combat money laundering.
Source: Bits
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