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Taiwan’s financial regulator is reportedly set to enforce a registration system for crypto exchanges in late November, signaling heightened scrutiny in the sector.
Taiwan‘s Financial Supervisory Commission is poised to implement a registration system for crypto exchanges on Nov. 30, ahead of schedule, marking a big step in regulatory oversight of the burgeoning crypto sector, per a report from Taiwanese news outlet Anue Juheng.
During a recent inquiry with the Legislative Yuan’s Finance Committee, FSC chairman Peng Chin-long disclosed that 26 exchanges have already obtained compliance declarations under anti-money laundering laws, with another 20 to 30 applications currently in process.
The FSC will reportedly enhance inspections of crypto exchanges, with six firms set for checks in November and December after last year’s inspections of four larger operators uncovered serious compliance deficiencies, including lapses in identity verifications and transaction monitoring.
Alongside, the FSC is developing a “Special Law for Crypto Exchange Management,” with public hearings slated for early 2025. The law is said to establish more transparent regulations surrounding licensing, consumer protection, and operational standards for exchanges.
The FSC’s cautious approach reflects the challenges Taiwan faces in navigating the rapidly evolving digital asset landscape while ensuring adequate consumer protections and regulatory compliance. In early October, the regulator proposed new anti-money laundering regulations for crypto exchanges, mandating providers to submit annual risk assessment reports and establish internal control and audit systems under the updated rules.