Taiwan moves versus anonymous crypto transactions

Taiwanese legislators have amended the country’s financial laws in order for cryptocurrency transactions to be covered by the same anti-money laundering (AML) restrictions as fiat currencies.

News outlet Focus Taiwan said the changes to the country’s AML and terrorism financing prevention laws will now be applicable to cryptocurrencies. State regulator the Financial Supervisory Commission (FSC) will have authority to make cryptocurrency exchanges and other trading platforms require users to provide their real names. If cryptocurrency-related companies are unable to obtain such information in servicing their clients, banks could refuse to deal with them, and even report them in the event that such transactions appear suspicious.

News.Bitcoin.com noted that noncompliance with the new measure by nonfinancial firms will result in a fine of from CNY50,000 ($7,300) to not more than CNY1 million ($145,000). Noncompliant financial institutions, on the other hand, will be meted a penalty of from CNY500,000 ($73,000) to not more than CNY10 million ($1.45 million).

The Ministry of Justice was reported by Focus Taiwan as saying that previous amendments in 2016 had been insufficient in preventing financial crimes, thus requiring the recent legislation, which is expected to raise the country’s standing when it is evaluated by intergovernmental organization the Asia/Pacific Group on Money Laundering (APG) this month.

The ministry also said Taiwan would now be more in conformity with international standards versus money laundering.

A representative from cryptocurrency exchange BitoEX was cited by News.Bitcoin.com as saying the company’s requirement to provide real names had only been applicable to transactions involving fiat. Cryptocurrency-to-cryptocurrency transactions, however, have been possible without providing one’s real name.

FSC Chairman Wellington Koo has said that his agency was in the process of drafting guidelines for initial coin offerings (ICOs), with the aim of simplifying the offering process, and to enhance the liquidity of tokens. The FSC reportedly intends to implement the new ICO regulations by June 2019.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

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Securities chief reveals Taiwan’s plan to regulate ICOs

Taiwan’s regulators are taking a bold step towards regulating initial coin offerings (ICOs) in the country.

Wellington Koo, the chairman of Taiwan’s Financial Supervisory Commission (FSC), has revealed that investing in ICOs will soon be easy and safe in Taiwan. The chairman revealed the commission is in the process of drafting regulations that will simplify the ICO process for investors and will make digital tokens liquid as stocks. According to the Taipei Times, the FSC has plans to set up the regulation by June of 2019. The regulatory body has already started a review process under which different types of token offerings would qualify to become regulated products.

During a meeting of the Legislative Yuan’s Finance Committee, Koo confirmed that the FSC has no intention of regulating utility tokens. Koo was quoted by the news outlet as saying, “The commission has no intention of curbing the creativity and productivity associated with cryptocurrencies if they are not used as securities.”

Koo made the remarks after Chinese Nationalist Party legislator William Tseng addressed the issue of Taiwanese government’s plans for regulating ICOs during a question-and-answer session. According to the FSC chairman, a regulatory framework will grant investors will have access to better products and reduce fraud, saying, “The more we regulate, the more this new economic behavior wanes.”

Koo has shown a great deal of support for the crypto sector as chairman of the FSC. In 2017, he refused to place outright bans on crypto related activities. He told the Taiwanese parliament that he preferred Taiwan to be an enabling environment for the development and adoption of blockchain technology and cryptocurrencies.

Taiwan is not the only country taking positive actions towards ICOs; South Korea might also lift its ICO ban sometime this year. Lee Hye-hoon, the chairperson of The National Assembly Special Committee while speaking at the 2018 Korea Blockchain Expo revealed that the ban may be lifted in the “near future.”

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

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