Taiwan’s financial watchdog to expand oversight of crypto exchanges: report

Taiwan’s financial regulator will reportedly introduce a registration system for crypto exchanges in late November, signaling greater scrutiny on the industry.

Taiwan’s Financial Supervisory Commission is preparing to implement a registration system for crypto exchanges ahead of schedule on November 30, Taiwanese news outlet Anue Juheng reported. This marks a major step forward in regulatory oversight of the burgeoning crypto industry.

During a recent investigation with the Legislative Yuan’s Finance Committee, FSC chairman Peng Chin-long revealed that 26 exchanges have received declarations of compliance under anti-money laundering laws, and another 20 to 30 applications are currently in process.

The FSC will reportedly step up inspections of crypto exchanges, with six firms carrying out checks in November and December after inspections of four major operators last year revealed serious compliance deficiencies, including shortcomings in identity verification and transaction monitoring.

Additionally, the FSC is working on the “Special Law for Crypto Exchange Management”, with public hearings scheduled for early 2025. The law is said to create more transparent regulations for exchanges regarding licensing, consumer protection and operational standards.

The FSC’s cautious approach reflects the challenges Taiwan faces in navigating the rapidly evolving digital asset landscape while ensuring adequate consumer protection and regulatory compliance. In early October, the regulator proposed new anti-money laundering regulations for crypto exchanges; It required providers to submit annual risk assessment reports and establish internal control and audit systems in accordance with the updated rules.