Binance, renowned as the world’s leading cryptocurrency exchange in terms of trading volume, is said to have initiated the process of registering within Taiwan’s regulatory framework, as mandated by the Money Laundering Control Act and the Financial Supervisory Commission (FSC).
As reported by local media, the FSC has reportedly reached out to numerous domestic crypto service providers, informing them of Binance’s pursuit of Anti-Money Laundering (AML) compliance.
The details stem from insights shared by Chen Peiyun, co-founder of BitShine, a cryptocurrency exchange based in Taiwan.
Chen Peiyun disclosed that Binance has been identified by the FSC as a potential participant in the Taiwanese crypto market.
Requests for comments from Binance, regarding these recent developments, have yet to be addressed as of this time.
Taiwan’s cryptocurrency sector has mostly existed without comprehensive regulation.
However, to bolster security and transparency, the FSC introduced AML guidelines in July 2021, mandating all cryptocurrency exchanges operating within or providing services to the nation to adhere to these regulations.
Operating in Taiwan through a local subsidiary known as Binance International Limited Taiwan Branch (Seychelles), the exchange’s registration records indicate the formal establishment of this entity on May 12, 2023.
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In addition to formalizing its presence through registration, Binance has also formed collaborations with local governmental bodies to combat cybercrime, emphasizing their commitment to security.
Notably, the FSC took on the role of being the primary overseer of cryptocurrency-related activities within the country earlier in March.
This transition was accompanied by an announcement from the regulatory body’s leader, affirming their intentions to develop substantial regulations and policies.
These efforts encompass safeguarding customer assets, segregating them from company funds, and bolstering investor protection practices.
It’s pertinent to mention that Taiwan’s cryptocurrency policies will remain separate from those of mainland China, which, since 2021, has imposed a comprehensive ban on all cryptocurrency-related operations.
These reports of Binance’s intent to engage with the Taiwanese cryptocurrency market coincide with the exchange facing heightened regulatory scrutiny within the United States and Europe.
The company is presently confronted with numerous legal actions in the United States, coupled with the withdrawal from various European jurisdictions following regulatory confrontations.
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