Due to the directive issued by the Financial Supervisory Commission (FSC) of Taiwan, aimed at strengthening the business relationship and transaction monitoring between banks and virtual currency platforms, XREX, an exchange, has made adjustments.
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FSC’s new regulations promote a healthy trading environment
XREX adjusts its services in accordance with FSC’s guidance
Impact and future business?
Taiwan’s cryptocurrency industry faces frequent regulation
On January 10, 2023, the FSC released a directive to regulate the business collaboration and transaction monitoring between banks and virtual currency platforms. The main purpose of this move is to enhance anti-money laundering measures in banks and ensure transparency and legality in transactions. These new regulations require banks and virtual currency platforms to comply with the “Regulations for Establishing Business Relationships and Transaction Monitoring in Banks and Virtual Currency Platforms and Trading Businesses.”
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FSC officially announces VASP guidance, both “domestic currency businesses” and “foreign currency businesses” to be regulated
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XREX announced today that in order to comply with the FSC’s guidance and the self-regulatory rules of the Bankers Association, the virtual currency platform XREX will temporarily suspend its USD deposit and withdrawal services for “Taiwanese citizens and natural persons” starting from January 30th. This adjustment will affect the trading methods of some users, but XREX stated that it will continue to provide other stable and reliable trading options.
XREX stated that this adjustment mainly affects Taiwanese users who use Mega International Commercial Bank for USD transactions. XREX suggests that these users switch to Customers Bank in the United States for transactions to ensure smooth trading. TWD transactions will not be affected and will continue to operate normally. XREX also stated that once Mega International Commercial Bank provides the corresponding USD trust services and meets the relevant regulations, they will consider resuming cooperation with the bank.
Although XREX’s adjustment may cause inconvenience to some users, it reflects the direction of the entire Taiwanese financial industry towards greater transparency and compliance. For the cryptocurrency industry that was previously in a gray area of finance, there have been multiple law enforcement actions in recent years:
First case of exchange involved in money laundering transformation? BITGIN unexpectedly expels individual accounts and transitions to corporate accounts
ACE, the leading exchange, implicated in money laundering scandal: FSC takes action, imposes a maximum fine of tens of millions
JPEX case: North District Prosecutors’ Office lists Chen Ling Jiu as a defendant in the investigation, Tony Zhang Dongying posts bail of 1.5 million and is restricted from leaving the country
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Assisting in promoting media
not yet under investigation)
The VASP Association Preparatory Group also declares its commitment to establishing standards after its establishment.
XREX
deposit and withdrawal
USD
Further reading
XREX obtains principle approval for Singapore payment institution license, will expand support for various currencies
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