The world’s largest cryptocurrency exchange, Binance, is in the process of seeking registration according to Taiwan’s Money Laundering Control Act, which currently constitutes the sole set of cryptocurrency-related regulations formulated by local authorities.
During a private meeting held on Tuesday, the Financial Supervisory Commission (FSC) of Taiwan communicated to numerous domestic crypto service providers in attendance that this exchange has initiated the procedure to obtain registration for the purpose of adhering to anti-money laundering protocols. This information comes from two individuals familiar with the situation.
Taiwan has mandated that providers of virtual asset services (VASPs) must conform to its anti-money laundering regulations since the FSC introduced these rules in July 2021. In the absence of such compliance, the cryptocurrency industry in the country remains largely unregulated.
The Block’s request for a comment was not promptly addressed by Binance.
During a telephone conversation on Friday with The Block, an official from the FSC declined to provide a statement regarding whether Binance had submitted the required documentation for registration with the regulatory body. However, the official emphasized that offshore cryptocurrency platforms operating within Taiwan are strongly encouraged to adhere to the local anti-money laundering regulations.
While this exchange remains unregulated within Taiwan, the exchange has established a local entity known as “Binance International Limited Taiwan Branch (Seychelles),” as indicated in the Department of Commerce’s records. The information related to registration disclosed that the government granted approval for Binance’s company registration on May 12, 2023, with a registered capital amounting to NT$30 million ($944,000) in Taiwan.
Binance’s Local Operations in Taiwan
Binance has taken proactive steps in collaborating with local law enforcement agencies in Taiwan to combat cybercrime. In June, Binance announced its partnership with Taiwan’s Criminal Investigation Bureau, working together to impart their expertise in addressing crimes associated with digital assets to over 200 law enforcement officers in Taiwan.
Damien Ho, who serves as Binance’s Head of Global Partnerships, emphasized the significance of ensuring the safety and comfort of users within the cryptocurrency ecosystem, especially as the interest in cryptocurrencies grows among people in Taiwan. This sentiment was conveyed in a blog post made in June.
Binance’s active expansion across Asia is noteworthy. In recent times, the exchange successfully launched operations in Japan, having acquired the local exchange Sakura Exchange BitCoin in November 2022. This strategic move not only marked its official entry into the Japanese market but also paved the way for regulatory oversight by the Japan Financial Services Agency.