Chinese Taipei: Closed consultation on Regulations on Anti-Money Laundering Registration for Businesses or Personnel Providing Virtual Asset Services including user/subject right

On 4 November 2024, the Financial Supervisory Commission (FSC) closes its consultation on the draft measures designed to enhance anti-money laundering (AML) practices for companies or individuals providing virtual asset services (VASPs). The Regulation mandates the display of essential information on the websites of relevant entities, including details pertaining to anti-money laundering (AML) registration, business operations, and customer protection measures. Virtual asset exchanges are required to publish details of their exchange services, including price determination methods and a link to the virtual asset's white paper. Furthermore, exchanges are obliged to disclose real-time trading information, retain transaction records for a period of five years, and establish rules to protect customer rights. In particular, trading platforms are required to implement internal control systems for the listing and delisting of virtual assets. These systems must take into account a number of factors, including the asset's compliance with relevant legislation, potential market risks and the technological aspects involved. It is a requirement for Virtual Asset Custodians to maintain a strict separation between customer and proprietary assets. Furthermore, custodians are obliged to record details of each customer's assets, implement regular reconciliation procedures and undergo an annual audit. Finally, virtual asset underwriters must publish information on the assets they underwrite, following proper review procedures, and ensure the integrity of the virtual asset issuance process.