Regulation
Taiwan moves to promote self-regulation among crypto firms
In a recent development, 24 crypto firms in Taiwan have jointly established an association to enable them to self-regulate their businesses.
This move comes after the country’s Ministry of Justice proposed amendments to the Anti-Money Laundering (AML) Regulation that could result in two years’ imprisonment and other penalties for violators.
Crypto firms aim to create fair regulations to revive the Blockchain industry
The new association, Taiwan Virtual Asset Service Provider (TVASP), was launched on June 13 with 24 cryptocurrency firms as founding members. According to a report from an online crypto site, BitPro founder and CEO Titan Cheng is the president of the association.
In the meantime, an XREX report on X revealed that Winston Hsiao, chief revenue officer of XREX, is vice president. In an X messagethe association said it aims to facilitate the growth of the blockchain financial sector across the world.
As such, it will promote and facilitate fair and rigorous standards to achieve its objectives. Furthermore, XREX stated that the association will fully cooperate with law enforcement agencies and the Ministry of Justice in combating criminal activities in space.
The exchange also said that TVASP will not only support the government in fighting fraud, but “will also contribute technology, infrastructure and industrial knowledge.
The XREX aims to join forces to create an industrial “joint defense platform” and design “international transfer rules”.
These rules, he said, will meet Taiwan’s standards, alliances and networking needs, allowing the country to create scanning and monitoring technology for its currency flow.
More importantly, the technology will be consistent with anti-money laundering regulations and fraud models. Speaking during the June 13 announcement, an FSC director, Hsiho Huang, applauded the move.
According to Huang, the association will foster consensus and cooperation in the industry, promoting standardization, compliance and greater development. Huang also said the association will bring greater stability, transparency, security and protection to consumer rights.
Taiwan’s Ministry of Justice has proposed an anti-money laundering amendment that triggers the creation of the VASP.
Prior to the recent development, Taiwan’s Ministry of Justice proposed to change the country’s anti-money laundering regulations. The ministry’s target was mainly virtual asset service providers that did not comply with regulations in the field.
According to the report, the Taiwan Executive Yuan proposed the “New four laws to fight fraud”.
The four amended regulations include the “Communications Security and Supervision Law,” the “Prevention of Fraud Harm,” the Money Laundering Prevention Law, and the “Technology Investigation and Security Law.”
While others were touched upon, more attention was given to the Prevention of Money Laundering Act by focusing on non-compliant VASPs. The law received three changes compared to the previous version, making it harsher, as it provided for a prison sentence and a large fine.
Under the proposed amendment, non-compliant crypto firms will pay up to $1.5 million in fines plus a two-year prison sentence. For now, reports suggest that Taiwan’s Legislative Yuan and the national parliament will review the amendments before they take effect.
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