Taiwan’s highest legislative body (the Legislative Yuan) has approved the amendments to existing laws aimed at obliging the users of trading and exchange platforms to indicate their real names. The country’s banks will now have to block suspicious transactions and report them to the financial regulator.
The amendments were adopted by the Legislative Yuan on Friday, November 2, as reported by the local outlet Focus Taiwan. The new revision of the Money Laundering Control Act and the Terrorism Financing Prevention Act is aimed at regulating cryptocurrency circulation in the country. It empowers Taiwan’s Financial Supervisory Commission (FSC) to combat anonymous cryptocurrency transactions.
“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,” – the news outlet detailed.
Banks will now be entitled to reject anonymous transactions from cryptocurrency exchanges. Moreover, they will be obliged to report any suspicious transactions to the FSC.
In accordance with the said amendments, non-financial enterprises will be at risk of being fined at least 50 000 yuan (about $7 250), should they fail to comply with anti-money laundering (AML) standards and requirements. Financial institutions will be fined 10 times this amount in similar cases.
Last month, the chairman of the FSC revealed that the regulator has been drafting ICO regulation. According to the official, when adopted, this regulatory framework is to simplify the process of investing in ICOs through making tokens just as liquid as stocks.