Taiwan seems to be doubling down on its the Money Laundering Control Act and the Terrorism Financing Prevention Act regarding cryptocurrency. According to a new update to its laws, the territory’s Financial Supervisory Commission will have the authority to “crack down on anonymous virtual currency transactions.
These legislations were passed on Friday the 5th of November 2018 at The Legislative Yuan, Taiwan’s highest legislative body.
The primary focus of these new legislation is to crack down on anonymous cryptocurrency transactions.No more anonymous actors
Banks are now to reject cryptocurrency platforms that run anonymously and suspicious transactions are to be reported to the authorities.
Most of all, “The FSC can now demand that operators of virtual currency platforms, including bitcoin, implement ‘real-name systems’ that require users to register their real names, according to the new provisions.”
This is perhaps the most significant part of the amendment as a number of sites allow people to register anonymously to trade cryptocurrency and this has given some layer of secrecy to users. This, however, will be coming to an end for platforms based in Taiwan.
This is presented mostly as a move to crack down on illegal or fraudulent activities paid for with cryptocurrency and also to ensure that taxes are filed properly on cryptocurrency incomes.
Some crypto enthusiasts would disagree as a lack of regulation and some level of anonymity are considered one of the main features of cryptocurrency.
Another amendment states that non-financial institutions that violate regulations against money-laundering will be fined more than 50,000 yuan ($7,256) but less ...