The government of Taiwan will be rolling out new regulations for cryptocurrencies later this year.
During a conference dedicated to anti-money laundering (AML) on Friday, Chiu Tai-san, Taiwan’s Minister of Justice, said that it plans to establish control mechanisms on bitcoin and other cryptocurrencies by November of this year. The regulations will aim to prevent cryptocurrencies from becoming instruments for money laundering.
Chiu said the relevant control mechanism and laws to govern and regulate cryptocurrencies will be set by the Financial Supervisory Commission (FSC), alongside the consultation of the Ministry of Interior, the central bank, and the Investigation Bureau.
FSC chairman Wellington Koo said that the current problem with cryptocurrencies is “who has purchased it and who it is sold to.” As part of the AML program, the FSC reportedly has asked banks to list crypto trading platforms’ accounts as “high-risk accounts.” If transactions through these accounts go above a certain threshold, the banks must notify the regulator to prevent any potential money laundering instances.
The remarks came after Yang Chin-long, Taiwan’s new central bank governor, urged the government to regulate bitcoin in a bid to avoid disruption of the local financial market order. Yang said that “since 87.5 percent of the bitcoin transactions have been owned by only 0.61 percent of the trading accounts in the world, it is easy for the cryptocurrency to be manipulated.”
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