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Taiwan Produces Laws Against Anonymous Crypto Transactions

Anonymous crypto transactions in Taiwan are facing new regulations from the local government. As a result, the FSC currently has the power to crack down on any anonymous transactions in digital currencies.


 

Amending the Law

The decision was made by the Legislative Yuan, the highest lawmaking entity in Taiwan, passed these modifications into laws that already exist regarding the regulations of crypto transactions. These modifications were implemented to take action against laundering money and also for fighting acts of terrorism which could be aided and abetted by the financial sector.

Specifically, the FSC has the power to force the operators of digital currency trading platforms, and that includes BTC, to implement networks that demand users to use their real names upon registration as per the new regulations. Banks now have the power as well to deny the use of crypto exchange transactions if they are anonymous and any suspicious activity can be reported to the FSC by the bank.

As per the new law, a fine that will exceed 50,000 yuan, or $7,256, will be levied for any violation of rules regarding money laundering activities by non-financial organizations, but the total amount will not exceed 1 million yuan. On the other hand, financial organizations face a much stiffer fine of over 500,000 yuan, but not exceeding 10 million yuan.

Providing Personal Identification

A cryptocurrency exchange platform in Taiwan called Bitoex, which is claiming to have 80% of the total local market share and about 300,000 users, announced that it has started a system requiring that users provide their real names since July of this year. Furthermore, Bitopro, the international exchange platform of Bitoex, was just released earlier this year with a real-name system for all fiat transactions, in which real identities, as well as bank authentications, are requisite for any purchase of BTC or other cryptos with NTD. When it comes to the trading of cryptos without the involvement of fiats, anonymity is not a problem and personal data is not required.

Bitoex has 3 different levels to have an account. With Level C, you only need a valid email and your phone number. Level B requires your ID card, your passport, or a foreign resident identification card. The first level, Level A, demands your bank account data.

Individuals can purchase BTC from Bitoex at the convenience store, Family Mart, which has 3,296 branched across Taiwan, and this process will require Level B authentication.

This system of real-name identification is enforced with any deposits or withdrawals that involve fiat. South Korea uses a similar system whose implementation came last January. But the financial authorities in Korea do not have the power to demand this type of system with cryptos because the adoption of the technology there is moving slowly. In the meantime, a court in Korea recently provided a ruling that banks don’t have the authority to block transactions of cryptocurrency exchanges who are not forcing a real-name authentication system.

The FSC is also looking to amend the regulations put forth for ICOs, as per the chairman Wellington Koo, and its implementation is expected in June 2019.

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