The world’s largest digital currency exchange, Binance, has taken preliminary steps towards achieving Anti-Money Laundering (AML) compliance in Taiwan. This move comes as part of a broader strategy to enter the Taiwanese crypto market and help navigate the emerging regulatory landscape in the region.
According to a local publication and confirmed by Chen Peiyun – co-founder of Taiwan’s local currency exchange BitShine – the Financial Supervisory Commission (FSC) recently shared this development with various domestic crypto service providers. Binance is leveraging the country’s new AML guidelines (introduced in mid-2021) to facilitate its expansion.
As it stands, Binance operates in Taiwan through a local entity named ‘Binance International Limited Taiwan Branch (Seychelles)’ The entity was registered on 12th May 2023. However, the specifics of how Binance will transform its operations to comply with these AML regulations remain unclear.
The Taiwanese cryptocurrency industry, largely unregulated until now, finds itself in an interesting position with the introduction of these new AML guidelines. The FSC has been the main regulatory authority for cryptocurrencies in Taiwan since March this year. A significant aspect of it’s focus will be to ensure separation of customer assets from company funds, and uphold investor protection practices.
Despite the uncertainties, Binance’s moves reflect its ambitions to continue expanding in the Caribbean, even amid recent regulatory challenges faced in the United States and Europe. The exchange currently faces multiple lawsuits in the US and has consequently pulled out from several jurisdictions in Europe.
The narrative of Binance’s entry into Taiwan also fuels the country’s drive to distinguish its crypto policies from mainland China, which has announced broad restrictions on related activities since 2021.
While it’s evident that Binance’s strategic play for AML compliance in Taiwan reinforces its commitment to navigating shifting regulatory landscapes worldwide, the company’s capacity to sustain operations while ensuring full compliance remains to be seen. The outcome is a tale to watch, given the influence it could have on the industry’s broader regulatory landscape.
Source: Cointelegraph
