Taiwan joins the list of countries that are set to introduce highly defined regulations affecting cryptocurrency use. New regulations are created with the purpose of fighting money laundering.
We always knew that the nature of cryptocurrency will draw in some shady users that will want to use blockchain technology in illegal activities. Fortunately, this is actively discussed and regulations are being drafted. Taiwan is just the latest in a chain of countries that do not ban cryptocurrency and try to regulate use.
Taiwan’s Justice Minister, Qiu Taisan, declared that the new laws will be in place around November 2018. This is scheduled after the country will host the Asia Pacific Group for talks about anti-money laundering strategies. The current laws will be evaluated and changes will be made in order to draft brand new crypto-related laws that are beneficial for users and businesses.
What is interesting is that in this particular situation we see the country’s central bank actively involved in regulating cryptocurrency, together with the Ministry of Interior. Talks already happened with main exchange platforms to talk about country operations.
The High Risk Client
One of the main focuses of the regulations, as already listed, will be to prevent using cryptocurrencies for money laundering activities. Right now, country banks were instructed by the Financial Supervision and Management Commission to label bitcoin accounts as belonging to “high risk clients”. Financial institutions are also now instructed to properly educate customers about cryptocurrency investment risks, which is not properly defined though.
Cryptocurrencies Will Not Be Banned
Terrorist financing threat will continue to be an issue whenever referring to cryptocurrencies. Even so, Taiwan does not want to ban cryptocurrencies. In fact, we see a constant evolution in the Asian market. Countries keep adapting and are now highly interested in regulating digital currencies. Singapore and Japan are crypto-friendly while China, India and Thailand are sort of attacking the crypto market.
Cryptocurrency bans are risky because user interest is growing around the world. Taiwan realizes this and might actually benefit from regulations. As people are moving away from China, Taiwan may be another market to consider for crypto based businesses.