Taiwan's banks tighten anti-money laundering regulations, Taiwan's Bitcoin exchanges face severe situation

Golden Finance News - After Wells Fargo decided to de-risk (which only affects wire transfers), Bitcoin exchange Bitfinex notified customers that all wire transfer recharge services for Bitcoin transactions will be "blocked and rejected" by Taiwanese banks.

The Taiwanese authorities have set up an office dedicated to combating money laundering. Image source: Golden Finance

According to an article by Whalecalls, Taiwanese banks did not previously have strict AML/KYC requirements, but their regulations were sufficient to comply with U.S. regulations. However, the U.S. recently revised these requirements. The U.S. Financial Crimes Enforcement Network (Fincen) has begun requiring money transfer services to report suspicious money activity.

“When a transaction conducted through a money service business (MSB) is suspicious or exceeds $2,000, the MSB is required to report it to Fincen,” Fincen’s website states.

The agency said bitcoin exchanges have been classified as money services businesses (MSBs).

Although the United States has tightened its control over money service businesses (MSBs), Taiwan itself has plans to strengthen its AML/KYC work. According to Taiwanese media reports, on March 16, the Taiwanese authorities established an office dedicated to helping the market create a more transparent and orderly financial environment by combating money laundering.

Taiwan itself also plans to strengthen AML/KYC work. Image source: Golden Finance

-- It was reported that in August last year, the New York Department of Financial Services (DFS) issued a $180 million fine to Taiwan's Mega Bank due to poor compliance and a large number of suspicious transactions between its New York branch and its Panama branch.

Shortly after Taiwan’s regulator set up its AML office, bitcoin exchanges began experiencing deposit problems. The situation in Taiwan looks grim as U.S. banks de-risk and Taiwan seeks to rebuild its reputation.