Taiwan, officially known as the Republic of China, has taken regulatory steps towards halting anonymous cryptocurrency transactions. The country’s highest legislative authority passed amendments which allow its financial watchdog to demand cryptocurrency platforms to implement “real-name systems.”
A Clear Position
Taiwan’s highest legislative body, the Legislative Yuan, has reportedly amended existing regulations regarding the anonymous nature of cryptocurrency transactions. The new changes broaden the capabilities of the country’s financial watchdog – the Financial Supervisory Commission (FSC) – over cryptocurrency platforms. Asia Today, citing Focus Taiwan, reports:
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 report also outlines that banks will be able to reject transactions of cryptocurrency exchanges which are anonymous. Furthermore, banks also bear the obligation to report any transactions they deem suspicious to the FSC.
However, the regulations clearly regard transactions carried out on cryptocurrency exchanges. How and if the country will attempt to deal with anonymous peer-to-peer transactions remains unclear, if possible at all.
The local news media also reports that the amended provisions have introduced relatively hefty fines for those who fail to abide by the new regulations.
Non-financial enterprises which violate the anti-money laundering (AML) provisions will receive a fine between 50,000 yuan ($7,256) and 1 million yuan ($142,000). Financial institutions, however, will be facing charges far steeper than this – between 500,000 yuan and 10 million yuan – 10 times more.
The country of Taiwan has been fairly active over the last few months. In April, the country’s Justice Minister called for a comprehensive cryptocurrency framework. A few short months later, the FSC said that it could permit limited cash transactions of cryptocurrencies in convenience stores.
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