Taiwan is trying to promote self-regulation among crypto companies

In a recent event, 24 crypto companies in Taiwan jointly established an association to enable them to self-regulate their activities.

The move comes after the Ministry of Justice proposed changes to the Anti-Money Laundering (AML) Regulation, which could result in two years’ imprisonment and other penalties for those who default.

Crypto companies are pushing for fair regulations to strengthen the Blockchain sector

The new association, Taiwan Virtual Asset Service Provider (TVASP), launched on June 13, with 24 crypto companies as its founding members. According to a report by the crypto website, BitPro founder and CEO Titan Cheng is the president of the association.

Meanwhile, XREX report on X revealed that Winston Hsiao, XREX’s chief revenue officer, is vice president. IN post Xthe association said its goal is to facilitate the development of the blockchain financial industry around the world.

Accordingly, it will promote and facilitate fair and stringent regulation to achieve its objectives. Additionally, XREX stated that the association will fully cooperate with law enforcement agencies and the Ministry of Justice in combating criminal activities in space.

The exchange also mentioned that TVASP will not only support the government in combating fraud, but also “contribute to technology, infrastructure and industrial knowledge.

XREX aims to join hands in creating an industrial “common defense platform” and developing “international transfer rules.”

These rules, he said, would meet the standards of Taiwan’s needs, alliances and networks, enabling the country to create technology to scan and track currency flows.

Most importantly, the technology will be consistent with Taiwanese money laundering and fraud patterns. In a speech at the June 13 announcement, FSC Director Hsiho Huang praised the move.

According to Huang, the association will foster consensus and cooperation within the industry, promoting standardization, compliance and greater development. Huang also said that the association will bring greater stability, transparency, security and protection of consumer rights.

Taiwan’s Ministry of Justice has proposed an AML amendment resulting in the creation of VASP.

Before the latest developments, Taiwan’s Ministry of Justice has proposed changing the country’s anti-money laundering laws. The ministry mainly targeted virtual asset service providers failure to comply with regulations in force in the field.

According to the report, Taiwan’s Executive Yuan proposed “The new four anti-fraud laws.”

The four amended regulations include the ‘Communications Security and Surveillance Act’, the ‘Fraud Harm Prevention Act’, the Anti-Money Laundering Act and the ‘Technology and Security Investigation Act’.

While others were agitated, more attention was paid to anti-money laundering regulations focusing on non-compliant VASPs. The law received three modifications compared to the previous version, making it more stringent as it carried a prison sentence and a high fine.

Under the proposed change, crypto companies that fail to comply will pay a fine of up to $1.5 million plus a two-year prison term. For now, reports indicate that Taiwan’s Legislative Yuan and national parliament will review the amendments before they go into effect.