Taiwan bans anonymous transactions with cryptocurrencies.
Taiwanese lawmakers partially reformed local laws last Friday to counter money laundering and terrorist financing. Among the amendments applied, anonymous transactions with cryptocurrencies were prohibited, so all operators must apply “real name systems” so that users enter with their real name and not with pseudonyms.
With the amendments to the Money Laundering Control Law and the Prevention of Terrorist Financing Law, the authorities seek to “combat online financial crimes” and “end anonymous transactions in virtual currency,” according to a report released by the national news agency.
The Financial Supervision Commission of Taiwan (FSC) will be the body in charge of verifying the application of the law. On this point the regulatory body noted the following:
“The FSC can now require that operators of virtual currency platforms, including bitcoin, implement ‘real name systems’ that require users to register their real names, in accordance with the new provisions. If they do not, banks can reject anonymous virtual currency transactions and report them to the FSC if they consider them suspect.”
The new legislation indicates that those non-financial companies that violate money laundering rules may be fined between 50,000 yuan (US $ 7,256) and up to 1 million yuan (US $ 144,361). In the case of financial companies, the fines will range between 500,000 yuan (US $ 72,180) and 10 million yuan (US $ 1,443,610), according to digital media.
The Taiwanese Ministry of Justice also ruled on the reforms and noted that “the amendments not only align Taiwan more closely with international standards, but also make the anti-money laundering system in Taiwan more comprehensive and support the efforts to build a culture that values legal compliance. “
During the last months, Taiwan has been working on a regulatory framework of cryptocurrencies. In April of this year it was announced that by November they would begin to disseminate new measures to minimize money laundering and other illicit activities. On that occasion, the chairman of the Central Bank of Taiwan, Yang Chin-long, also proposed to subject the commercial operations with bitcoin to the existing legislation against money laundering.
The decision of the local authorities follows the same guidelines that implemented, in December 2017, South Korea. Almost 1 year ago this country announced new measures for the regulation of cryptocurrency exchanges. These new provisions also included the prohibition of anonymous accounts.
Taiwan, like Japan, opened the doors to the cryptoactive industry, encouraging its development. However, all the dynamics that involve companies in the ecosystem are highly regulated to avoid financial crimes and protect investors.
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