Taiwan’s Financial Supervisory Commission (FSC) has fined Hong Han Creative Company NT$500,000 for continuing to operate virtual currency business without completing anti-money laundering (AML) compliance measures, despite multiple warnings from the FSC. This marks the first time the FSC has imposed a fine for non-compliance with AML regulations. The FSC has stated that any entity engaged in virtual currency activities must comply with AML regulations and failure to do so is considered illegal. The FSC has urged Hong Han Creative Company to complete the required AML compliance measures within 1-2 months or face further penalties. The FSC has previously emphasized that individuals involved in virtual currency activities must register their businesses and comply with AML regulations. Prior to the introduction of AML compliance measures, many existing over-the-counter (OTC) currency exchanges in Taiwan had not completed or passed the AML compliance declaration. The FSC’s Securities and Futures Bureau has recently slowed down the approval process, with only a few exchanges being approved. Many exchanges that have not yet passed the compliance declaration are still waiting for approval. The FSC has advised industry players to understand the AML compliance declaration and the draft of the Virtual Asset Service Provider (VASP) association’s articles of association. It has also recommended that qualified entities, even if they have completed the AML compliance declaration, cooperate with each other to avoid business disruptions. The VASP association’s preparation team has also reminded entities undergoing ownership transfers or changes in business operations to notify the FSC in advance, as some qualified entities have failed to follow these steps. Other entities are advised to prioritize completing the AML compliance declaration as it is the first requirement under Taiwan’s regulatory framework.
Innovative Penalty Imposed on Unauthorized Currency Dealers! Financial Supervisory Commission Fines Hanhan Creative with NT$500,000 for Anti-Money Laundering Violation