Taiwan clamps down on anonymous crypto transactions with new AML legislation

05 Nov, 2018
by Richard Allen
News
Taiwan clamps down on anonymous crypto transactions with new AML legislation

Taiwan has made amendments to its existing anti-money laundering (AML) and terrorism financing laws to combat the anonymous nature of cryptocurrencies, Focus Taiwan reports.

On Friday, Taiwan’s highest legislature, the Legislative Yuan, approved amendments to the Money Laundering Control Act and Terrorism Financing Prevention Act to give Taiwan’s Financial Supervisory Commission (FSC) the power to crack down on anonymous cryptocurrency transactions.

The amendments allow the FSC to demand cryptocurrency exchanges implement “real-name systems” that will require users to disclose their true identities before being allowed to trade on the platform.

Additionally, banks are also allowed to reject anonymous cryptocurrency transactions and report them to the FSC if they are deemed suspicious. The Ministry of Justice stated that the amendments align Taiwan more closely with international standards as well as enhancing the country’s AML procedures.

According to BitcoinNews, a spokesperson from crypto exchange BitoEx said that anonymity was only relevant in cases of crypto-to-crypto transactions. Fiat-to-crypto transactions had always required a user’s full identity.  

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