Due to the directive issued by the Financial Supervisory Commission (FSC) in Taiwan, aimed at strengthening the business relationship and transaction monitoring between banks and virtual currency platforms, the Far Eastern International Bank has made adjustments to its operations with XREX.
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FSC’s New Regulations Promote a Sound Trading Environment
Far Eastern International Bank Adjusts Services in Response to FSC’s Guidance
Impact and Future Business
Taiwan’s Cryptocurrency Industry Faces Frequent Regulatory Actions
On January 10, 113, the FSC issued a directive to regulate the business cooperation 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 the transaction process. These new regulations require banks and virtual currency platforms to comply with the “Business Relationship and Transaction Monitoring Self-Regulation Rules for Banks and Virtual Currency Platforms and Trading Businesses”.
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In its announcement, XREX stated that in order to comply with the FSC’s guidance and the self-regulation rules of the Bankers Association, the Far Eastern International Bank will suspend its US dollar deposit and withdrawal services for XREX’s “Taiwanese nationals and natural persons” from January 30. This adjustment will affect the transaction methods of some users, but XREX stated that it will continue to provide other stable and reliable transaction options.
XREX stated that this adjustment mainly affects Taiwanese users who trade in US dollars through Far Eastern International Bank. XREX recommends these users to switch to Customers Bank in the United States for their transactions to ensure smooth transactions. Transactions in New Taiwan dollars will not be affected and will continue to operate as usual. XREX also stated that once Far Eastern International Bank provides the corresponding US dollar trust services and meets the relevant regulations, they will consider resuming cooperation with the bank.
Although this adjustment by XREX may cause inconvenience to some users, it reflects the direction of the entire Taiwanese financial industry towards greater transparency and compliance. In recent years, the cryptocurrency industry, which used to operate in a gray area of finance, has faced several law enforcement actions:
First case of a cryptocurrency exchange transforming after being involved in money laundering? BITGIN to expel individual accounts and transform into operating as a corporate entity
ACE, a top-tier exchange, implicated in money laundering scandal: FSC takes action, imposes a maximum fine of 10 million
JPEX case: Chen Lingjiu listed as a defendant in the investigation, Tony Zhang Dongying released on bail of 1.5 million and restricted from leaving the country
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Regarding these phenomena, the VASP Association Preparatory Group has also declared its commitment to establishing standards after its establishment.
XREX
Deposit and withdrawal
US dollars
Further Reading
XREX Launches New New Taiwan Dollar Trading Service! Providing Taiwanese users with a smoother and more diverse trading experience
Binance speeds up KYC progress for all users, unable to trade without completing intermediate verification.