The Financial Supervisory Commission is to set up new money laundering regulations for the nation’s cryptocurrency exchanges from July 1, requiring them to report transactions valued at more than NT$500,000 (US$17,770), the commission said yesterday.
The move came after the Executive Yuan earlier this month demanded that the commission establish regulations to prevent money laundering in the cryptocurrency industry.
The cryptocurrency industry includes local trading platforms for cryptocurrencies, cryptocurrency wallet providers and firms that conduct security token offerings, the Executive Yuan said.
Photo: Kelson Wang, Taipei Times
The commission plans to require cryptocurrency exchanges to report any transaction of more than NT$500,000 conducted in cash, or an equivalent amount denominated in a foreign currency, Banking Bureau Deputy Director-General Lin Chih-chi (林志吉) told a news conference in New Taipei City.
That is in line with the commission’s money laundering requirements for conventional banks, Lin said.
However, investors are unlikely to buy bitcoin with more than NT$500,000 in cash, as most exchanges require clients to link their bank accounts to their trading services, a commission official surnamed Yen (顏) said.
The BitoPro (幣託) exchange does allow clients to pay with cash at local convenience stores, but the amounts are limited to NT$20,000 at a single store, the official said.
For trades between different types of cryptocurrency — such as investors exchanging ether for bitcoin — the commission is to require exchanges to report large transactions and to ensure they fulfill the “know your customer” requirements, Lin said.
The commission is to hold a public hearing next month with eight local exchanges, including Maicoin Ltd (現代財富科技), Ace Digital Innovations Co Ltd (王牌數位創新) and BitoPro, he said.
While some exchanges have reportedly required their clients to reopen their accounts to fulfill the “know your customer” requirements, the commission had not issued such an order, Lin said.
The commission’s regulation of the industry is to focus on customer identity authentication and “know your customer” requirements, personal data storage and information security, Lin added.
Companies that fail to comply with the new regulations would face fines of up to NT$10 million, the commission said.
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