Taiwan tightens AML rules as Indonesia digital assets hit $30B

Taiwan has accelerated the implementation of its anti-money laundering (AML) rules, aiming to strengthen the regulatory framework for digital asset service providers.

Initially set for a 2025 rollout, the new measures are now in effect as of late November.

The Financial Supervisory Commission (FSC) has mandated that all digital asset service providers, regardless of prior registration, must obtain new AML certifications.

Violations of the updated AML rules will lead to hefty fines of up to NT$5 million (approximately $155,900) or imprisonment for principal officers of the companies involved.

The revised AML playbook requires companies to monitor for suspicious transactions and report anomalies such as frequent information changes, VPN usage, irregular account details, and large transfers of digital assets.

The rules also target small but frequent transactions below reporting thresholds, the use of mixers, privacy coins, and previously dormant accounts becoming active.

These measures represent an upgrade to the 2021 AML regulations that initially brought digital asset exchanges under Taiwan’s scrutiny.

The FSC’s recent enforcement actions against MaiCoin and BitoPro for failing to meet customer due diligence and record-keeping standards highlight the importance of compliance.

Analysts suggest that digital asset service providers in Taiwan may turn to emerging technologies like artificial intelligence (AI) to streamline compliance processes.

Meanwhile, Indonesia has seen a surge in digital asset trading, with volumes reaching $30 billion in the first ten months of 2024, a 350% increase from 2023.

This surge follows a challenging period marked by a bear market, regulatory changes, and security concerns.