Binance Initiates Registration Process in Taiwan for AML Compliance, Insider Reports Say

Binance is making a significant move towards regulatory compliance by applying for registration under Taiwan’s Money Laundering Control Act.

This development marks a pivotal step in aligning with local anti-money laundering (AML) regulations, as Taiwan remains one of the few countries to have introduced crypto-related regulations.

Sources reveal that Binance is actively seeking registration for anti-money laundering compliance within the framework of Taiwan’s financial regulations.

The Financial Supervisory Commission (FSC) conveyed this information during a closed-door meeting attended by numerous domestic crypto service providers. This move underscores Binance’s commitment to fostering a secure and compliant crypto ecosystem.

Since the introduction of AML rules by the FSC in July 2021, virtual asset service providers (VASPs) have been required to adhere to anti-money laundering laws.

While the industry largely operates within a regulatory gap, this requirement emphasizes Taiwan’s stance on AML compliance. However, Binance’s recent application represents a progressive step towards closing this regulatory void.

While Binance is not yet fully regulated in Taiwan, it has established a local entity known as “Binance International Limited Taiwan Branch (Seychelles).”

This strategic move was reflected in the government’s approval of Binance’s company registration on May 12, 2023, with a registered capital of NT$30 million ($944,000) within Taiwan.

Despite these developments, Binance has not provided an immediate response to inquiries from The Block regarding its registration application.

An FSC official, speaking in a recent phone call with The Block, highlighted the importance of offshore crypto platforms adhering to local AML rules when operating in Taiwan.

While the official did not explicitly confirm Binance’s submission of registration documentation, this statement underscores the regulator’s emphasis on regulatory alignment.

Binance’s commitment to compliance is further evident through its collaboration with local law enforcement agencies in Taiwan.

In an effort to combat cybercrime, Binance partnered with Taiwan’s Criminal Investigation Bureau, sharing expertise with over 200 law enforcement officers.

This collaborative initiative aligns with Binance’s dedication to creating a safe and user-friendly crypto ecosystem for Taiwan’s growing interest in cryptocurrency.

Binance’s proactive expansion in the Asian market is apparent, with the exchange’s recent launch in Japan following its acquisition of Sakura Exchange BitCoin in November 2022.

This strategic move positions Binance for regulation under the Japan Financial Services Agency, highlighting the exchange’s commitment to responsible and compliant growth.