Binance Initiates Application for AML Compliance in Taiwan, According to Report

In a strategic move, Binance, renowned as the world’s leading cryptocurrency exchange based on trading volume, has reportedly initiated the process of registration in Taiwan, seeking adherence to the Money Laundering Control Act and the jurisdiction’s Financial Supervisory Commission (FSC).

According to a report originating from local media, the FSC has purportedly informed a number of domestic crypto service providers that Binance is actively pursuing Anti-Money Laundering (AML) compliance. Chen Peiyun, co-founder of Taiwan’s BitShine crypto exchange, is credited with the information. He revealed that the FSC identified Binance as among the prospective exchanges considering entry into the Taiwanese crypto landscape.

CryptoGrafos reached out for Binance’s comment on this matter, though the exchange has yet to provide a response.

While Taiwan’s cryptocurrency ecosystem has predominantly operated without comprehensive regulations, a significant shift occurred in July 2021 when the FSC introduced AML guidelines. These guidelines mandated that all crypto exchanges engaged in activities within the country or providing services therein must adhere to these stipulations.

Binance currently conducts its operations in Taiwan through a local entity, specifically Binance International Limited Taiwan Branch (Seychelles). Notably, the entity’s registration details confirm that it was officially registered on May 12, 2023.

Beyond its registration efforts, Binance has been active in collaborating with local governmental bodies to combat cybercrime effectively.

In March, the FSC became the principal regulatory authority for cryptocurrencies within Taiwan. During this announcement, the head of the regulatory body underscored the intention to prioritize the development of significant regulations and policies. These include the segregation of customer assets from company funds and the establishment of investor protection protocols.

Taiwan has been resolute in its intention to maintain autonomous cryptocurrency policies distinct from those of mainland China. This separation is particularly pronounced in light of China’s comprehensive ban on crypto-related activities, which has been in effect since 2021.

As these reports surface regarding Binance’s potential entry into Taiwan’s crypto market, the exchange concurrently grapples with regulatory scrutiny in both the United States and Europe. Binance is contending with multiple lawsuits in the U.S. and has opted to withdraw from various European jurisdictions following regulatory complications.

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