Taiwan‘s financial regulator is set to implement a registration system for crypto exchanges by November 30, ramping up scrutiny in the sector.
According to a report from Taiwanese news outlet Anue Juheng, the Financial Supervisory Commission (FSC) is making this move ahead of schedule, marking a significant step in enhancing regulatory oversight of the rapidly growing crypto market.
During a recent inquiry with the Legislative Yuan’s Finance Committee, FSC chairman Peng Chin-long revealed that 26 exchanges have already secured compliance declarations under anti-money laundering laws, while an additional 20 to 30 applications are currently being processed.
The FSC plans to intensify inspections of crypto exchanges, with six firms scheduled for checks in November and December. This follows last year’s inspections of four major operators, which uncovered serious compliance issues, including failures in identity verification and transaction monitoring.
In parallel, the FSC is drafting a “Special Law for Crypto Exchange Management,” with public hearings expected in early 2025. This legislation aims to create clearer regulations regarding licensing, consumer protection, and operational standards for exchanges.
The FSC’s careful approach highlights the challenges Taiwan faces in navigating the fast-evolving digital asset landscape while ensuring sufficient consumer protections and regulatory compliance.
In early October, the regulator proposed new anti-money laundering regulations requiring crypto exchanges to submit annual risk assessment reports and establish internal control and audit systems.
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