Taiwan's FSC warns encryption users: cracking down on Money Laundering again! Requires VASP to be vigilant; the same day unveiled the "Financial Market Innovation Department"

To prevent the increasingly rampant fraud and Money Laundering, the FSC recently issued a letter requesting Financial Institutions to set up four thresholds to strengthen identity control and prevent Money Laundering for Virtual Asset Service Providers. In addition, the FSC also established the 'Financial Market Development and Innovation Department' today. At the unveiling ceremony, FSC Chairman, Huang Tien-Mu, stated that the new department highlights the three core values of 'proactiveness', 'innovation', and 'development'. (Background: Taiwan's FSC opens 'financial industry to hold BTC': 5 banks have expressed interest, and will accept applications from New Year's Day) (Background: Crackdown on Fraud: Internet 'Real Name System' to be implemented on New Year's Day, FSC: VASP registration system will be launched by the end of the year) Against the backdrop of the continued prosperity of Cryptocurrency transactions, global regulation of the encryption industry is becoming more comprehensive. Even Taiwan is keeping pace with the times, releasing many relevant regulations, including the 'New Regulations for Money Laundering Prevention for Virtual Asset Services' that came into effect at the end of November. In addition, in order to strengthen the prevention of increasingly rampant Virtual Money fraud, the FSC recently implemented stringent measures, requiring Virtual Asset Service Providers to strengthen customer identity control. Furthermore, in conjunction with the FSC's 2025 financial inspection focus on Virtual Asset Service Providers (VASP), the financial transaction Money Laundering prevention measures of Virtual Asset Service Providers will become even more stringent. Extended reading: The end of the personal currency》Taiwan's new anti-money laundering regulations came into effect on 11/30, and unregistered entities are not allowed to provide virtual asset services. FSC's four Money Laundering thresholds According to a report by SET News, the FSC recently issued a letter requesting Financial Institutions to set up four thresholds for Virtual Asset Service Providers, including: First, verify the customer's identity, mainly when establishing business relationships, including whether the client of the asset service provider has completed the Money Laundering prevention registration in accordance with the Money Laundering Prevention Act. If the customer refuses to provide identity verification documents, or if the business model involves illegality, the establishment of a business relationship should be politely declined. In addition, it is also necessary to confirm that when a customer buys or sells virtual assets with the service provider, the flow of funds involved should be conducted through an account with the same name as the customer. Second, continuously review the identity of existing customers. Third, refer to the self-regulatory rules set by the Bankers Association to establish related transaction monitoring patterns, in order to clarify whether there are abnormal accounts involving Money Laundering, terrorist financing, or fraud crimes, and to report to the Ministry of Justice Investigation Bureau or the police. Fourth, if a Virtual Asset Service Provider is found to be suspected of engaging in securities, derivative financial products, deposit-taking, domestic and foreign exchange, or violating anti-money laundering laws, it should be reported to the judicial authorities, as it involves criminal responsibility. However, it should be noted that the definition of 'Money Laundering' in the field of encryption is still unclear, which may confuse encryption users. In response, an anonymous encryption business entity told BlockTempo: Using Decentralized Finance to buy tokens, many encryption communities also exchange Virtual Money as gifts or red envelopes during the holidays. Would this be considered Money Laundering? Banks cannot determine, and mistakenly judge based on lack of registration, which is actually due to incomplete regulations. Taiwan's FSC unveils 'Innovation Department' On the other hand, according to reports by United News, the FSC established the 'Financial Market Development and Innovation Department' today as a dedicated unit to promote the innovative development of the financial industry, and appointed Hu Tse-Hua as the director. In the future, the department will be responsible for 'financial technology and innovation', 'green and transformational finance', and 'financial market development'. At the unveiling ceremony, FSC Chairman Huang Tien-Mu mentioned that the new department embodies the three core values of 'proactiveness', 'innovation', and 'development', and stated that the future department will play the role of a 'watchman', allowing Taiwan to see more development possibilities: The future department will also take the initiative to do things, including things that others have not thought of, or many have thought of but not yet started, or things that others want to do but have not done well. He also pointed out that the department will expand its scope and scale, the former being the already permitted, and the latter being the not yet opened, to see if the scope of openness can be further expanded. He also hopes that the department will be able to play the role of a 'watchman' more effectively in the future. The FSC stated that the new department has four divisions, each responsible for the following businesses: First Division (Finance Innovation Division): Establish a single window to coordinate consultation, evaluation, and acceptance of financial technology cases; formulate and issue regulations, guidelines, and points related to the development of financial innovation; promote international exchanges of financial technology and collect and analyze trends. Second Division (Finance Innovation II Division): Manage innovation parks; supervise domestic large-scale innovation exhibitions and forums; plan and implement ecological cooperation; plan financial technology project subsidies and screening evaluations; plan the overseas export, funding, and cooperation of domestic new technology startups; plan talent cultivation in financial technology and regulatory technology, etc. Third Division (Green Finance Division): Plan and implement green and transformational financial action plans; collect and analyze trends in net zero and transformational issues; promote the net-zero work platform for pioneers; expand international exchanges and professional exports of green and transformational finance; plan domestic advocacy and education and training, etc. Fourth Division (Financial Development Division): Collect measures related to the development of international financial markets, evaluate the feasibility and methods of promoting them in our country; carry out sustainable finance evaluations, improve sustainable finance licenses; analyze, coordinate, and examine the policies of the Asian asset management center and consider promoting progress and achievements; coordinate with relevant ministries to jointly promote developmental cases, etc. Related reports: 14 Asian countries' financial technology associations signed the 'Cross-border Anti-fraud MOU', and the FSC and Ministry of Justice welcome its establishment. FSC confirms: VASP registration system will be launched ahead of schedule this December! Ge Ru-jun is concerned that businesses may be caught off guard. MaiCoin and exchange were fined 1.5 million by the FSC for violating Money Laundering Prevention Act. 〈Taiwan's FSC warns encryption users: Cracking down on Money Laundering! Requires VASP to be vigilant; unveils 'Financial Market Innovation Department' on the same day〉This article was first published on BlockTempo, the most influential blockchain news media in BlockTempo.