Binance Takes Steps Toward AML Compliance
The globally-renowned cryptocurrency platform, Binance, is making strides to secure its registration in line with Taiwan’s Money Laundering Control Act, which presently stands as the sole crypto regulation provided by the local government.
During a confidential conference held on Tuesday, the Taiwan Financial Supervisory Commission (FSC) informed local crypto services about Binance’s intentions to register for adherence to anti-money laundering policies. This information was corroborated by two insiders.
Since July 2021, Taiwan’s financial authorities have mandated that virtual assets services providers (VASPs) be compliant with the nation’s AML laws. The larger landscape of the crypto sector in Taiwan, however, still remains predominantly unregulated.
Local Presence of Binance in Taiwan
Though Binance is yet to be officially regulated in Taiwan, the platform has established a regional subsidiary known as “Binance International Limited Taiwan Branch (Seychelles).” As per records from the Department of Commerce, Binance’s company registration received the nod from the Taiwanese government on May 12, 2023, boasting a registered capital of approximately NT$30 million ($944,000).
Furthermore, in a bid to combat cybercrime, Binance has allied with Taiwanese law enforcement. A statement in June revealed Binance’s collaboration with Taiwan’s Criminal Investigation Bureau, offering its knowledge on digital asset-related criminal activities to over 200 Taiwanese enforcement officials.
Damien Ho, Binance’s Head of Global Partnerships, emphasized the increasing intrigue around cryptocurrencies in Taiwan, stating, “As the interest in cryptocurrency rises in Taiwan, ensuring a secure and user-friendly crypto environment is paramount.”
Binance’s Expansion in Asia
Binance’s growth trajectory isn’t just limited to Taiwan. It recently commenced operations in Japan, subsequent to its acquisition of the Sakura Exchange BitCoin in November 2022, thus aligning with the Japan Financial Services Agency’s regulatory framework.
Anticipated Regulatory Directions
Having been designated as the principal regulator for the crypto domain in March, Taiwan’s FSC is in the process of devising a comprehensive set of criteria concerning cryptocurrency trading and payments for VASPs. The FSC anticipates unveiling these guidelines for VASPs by September’s end.
Kevin Cheng, associated with the Taiwan Fintech Association, conveyed that the FSC is poised to employ stringent measures for regulating cryptocurrency platforms in Taiwan, mirroring its approach for traditional finance entities.
Cheng, previously a key figure in compliance at BitoEX (a leading crypto exchange in Taiwan), observed that the proposed rules could pose challenges. Specifically, the potential mandate for VASPs to segregate their own crypto assets from those of their clients, and to undergo annual audits, might deter many accounting firms owing to the intricate nature of crypto knowledge required.
BitShine CEO, Claire Chen, suggested the FSC might need collaboration with the CPA association to effectively audit crypto operations.
Enhanced Regulatory Overviews Proposed
April witnessed Taiwan’s legislators proposing an amendment to birth a new division within the FSC dedicated to crypto matters. As reported by the Economic Daily News, this proposition is in its early stages, necessitating further readings for finalization. If greenlit, this bureau will complement the FSC’s existing establishments overseeing varied financial sectors.
In a preceding move in July 2022, the FSC had cautioned banking and credit card establishments against facilitating credit card payments for virtual asset services.
