Binance, the world’s leading cryptocurrency exchange, has reportedly applied for registration in Taiwan under the Money Laundering Control Act and the Financial Supervisory Commission (FSC). The FSC recently informed several domestic crypto service providers that Binance is seeking Anti-Money Laundering (AML) compliance, according to a report published in local media. The information came from Chen Peiyun, co-founder of Taiwan-based exchange BitShine, who revealed that Binance was named as one of the exchanges planning to enter the Taiwanese crypto market.
The cryptocurrency industry is largely unregulated in Taiwan, but the FSC introduced AML guidelines in July 2021, which require all crypto exchanges operating or offering services in the country to comply with them. Binance is currently operating in Taiwan through a local entity called ‘Binance International Limited Taiwan Branch (Seychelles)’. The registration information shows that Binance’s local entity was registered on May 12, 2023.
In addition to its registration in Taiwan, Binance has also collaborated with the local government to combat cybercrime. However, the exchange did not respond to requests for comments from Cointelegraph at the time of writing.
Earlier this year, the FSC became the primary regulator of cryptocurrencies in Taiwan. The regulatory body’s chief announced that the focus would be on developing major rules and policies, including the separation of customer assets from company funds and investor protection practices.
It is worth noting that Taiwan’s crypto policies are independent of mainland China, which has imposed a blanket ban on crypto-related activities since 2021. This independence ensures that Taiwan can establish its own regulations and foster the growth of its crypto market.
The news of Binance’s entry into the Taiwanese crypto market comes amid ongoing regulatory challenges for the exchange in America and Europe. Binance is currently facing multiple lawsuits in the United States and has withdrawn from multiple jurisdictions in Europe due to regulatory concerns.
It remains to be seen how Binance’s application for registration in Taiwan will proceed and what impact it will have on the country’s cryptocurrency ecosystem. As the crypto industry continues to evolve, regulatory measures like AML compliance will play a crucial role in ensuring the security and legitimacy of digital asset transactions.
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