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Taiwan’s Bid to Curb Digital Money Laundering

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Money laundering is not a new phenomenon. However, this has hitherto been kept to traditional financial circles. Not anymore. Money Laundering has gone digital with the introduction of cryptocurrency. This has got many governments worried and they are now looking for ways to temper this trend. One of these is Taiwan that hopes to control how Bitcoin is traded through its current anti-money laundering rules.

Governor on the Receiving End

The Governor of Taiwan’s central bank was put to task when he met the country’s legislative arm on Monday. He was specifically questioned on how the banking authority expects to address the current “murkiness” that has arisen about due to cryptocurrency trading in the country. This was informed by the recent drop in process as reported by Taiwan’s Central News Agency.

In his response to the members of parliament, the governor intimated that there have been heightened efforts to monitor the volatile nature of Bitcoin in terms of its price movement. He promised to issue warnings and alerts to current and would-be investors on what to expect when working with Bitcoin and other cryptocurrencies.

Concerted Efforts

In addition to these efforts, the governor also said that there have been steps taken by the banking authority, which have started with recommendations to the Ministry of Justice in Taiwan that trading in Bitcoin be put under regulation, courtesy of the existing anti-money laundering regulations.

Eyes on the Prize

As much as this move is yet to be approved by the ministry, this is by far the strongest indication yet that the Taiwanese government is focused on putting Bitcoin regulation as one of its top agendas. In fact, it is only last month that Sheu Yu-jer, the island’s Finance Minister stated that it was high time Taiwan taxed cryptocurrencies and that the ministry is currently in the process of determining the best strategy, which will see the country come up with relevant taxation rules.

Asia Says Yes to Regulation

Even as this goes on in Taiwan, it is evident that other major Asian governments are already on the agenda to regulate how cryptocurrencies will be traded in these countries. This, they say, will help deal with cases of money laundering and in the process help bring down crime related to financial trades. On this note, Taiwan is reported to have formally banned domestic banks from offering virtual anonymous cryptocurrency accounts to users and made it mandatory that a new, real-name verification is done from February 2018. This was also followed shortly after by Malaysia introducing an anti-money laundering policy in March.

Image Credit: Deposit Photos

What do you think about Taiwan’s move to introduce anti-money laundering rules for cryptocurrency? Will this help reduce financial crimes in digital trading? Let us know of your views in the comments section below.

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