- Hsu wants Taiwan’s Money Laundering Control Act to be updated to cover DLT-based virtual currencies.
- The Proposal seeks to formulate new rules for cryptos and also enlighten the masses on digital assets.
- Hsu also wants Taiwan’s laws to correlate with the European Union Anti-Money Laundering regulations.
Taiwanese congressman, Jason Hsu has proposed an amendment to the existing anti-money laundering (AML) guidelines governing traditional financial instruments in the state, to enable the rules to cover initial coin offerings (ICO) and bitcoin-linked businesses, as stated in a press release on October 9, 2018.
Crypto Congressman Pushes for AML Rules Amendment
According to sources close to the matter, Jason Hsu, a Taiwanese lawmaker who’s fondly called Taiwan’s ‘crypto congressman’ due to his liberal stance towards the burgeoning digital asset class, is pushing for an amendment to the nation’s Anti-Money Laundering Control Act, to make the regulation robust enough to cover cryptoassets.
Hsu seeks to formulate new rules that would be added to the existing guidelines and make it mandatory for the masses to be educated on all things bitcoin, ICOs and the risks present in cryptocurrency trading.
Importantly, the official is looking to make the Taiwanese AML regulations to function in line with the Anti-Money Laundering Directive of the European Union.
New Legislation to Make Cryptocurrency Exchanges Conduct AML Checks
At a time when digital assets exchange platforms in forward-thinking Asian countries like South Korea, Japan and some others have made it compulsory for clients to complete their AML/KYC procedures, Hsu is looking to create a solid and amenable crypto regulatory framework for Taiwan.
According to the press release, once the regulation goes live, bitcoin trading venues will be required to keep records of customer transactions, carry out customer reviews and report suspicious transactions to the relevant authorities.
Hsu Says Regulation will Support the Growth of Cryptos and DLT
Though distributed ledger technology (DLT) may not be the solution the entire problems of the world, the groundbreaking technology and cryptocurrencies have however started showing great potentials that could help revolutionise a vast array of industries and economies.
The lawmaker has made it clear that his proposal is aimed at supporting the growth of DLT and cryptoassets in the country and he has called on all stakeholders in Taiwan’s cryptospace to keep acting responsibly and adhere to best practices in the industry.
