TAIWAN Trends and Developments Contributed by: Robin Chang, Sarah Wu and Eddie Hsiung, Lee & Li
providers are permitted to co-operate with for - eign e-payment service providers to offer cer - tain types of cross-border payment services in Taiwan, subject to the approval of the FSC. In 2021, the E-Payment Act and related FSC regulations underwent an amendment. This amendment simplified the required documents and the application process for cross-border co- operation. Additionally, it expanded the range of cross-border payment/remittance services that can be provided. As a result, it is anticipated that there will be an increase in the number of cross- border payment/remittance services offered in Taiwan under the revised E-Payment Act. AML With more and more criminal frauds involving emerging payment methods, anti-money laun - dering (AML) has become a widely discussed topic in the Taiwan regulatory environment in recent years. According to the newly amended Money Laundering Control Act (the “Taiwan AML Act” ), the Regulations Governing Anti-Money Laundering and Countering the Financing of Ter - rorism for the Enterprise Providing Third-Party Payment Services and the Regulations Govern - ing the Capacity Registration for Anti-Money Laundering and Countering the Financing of Ter - rorism for the Enterprise Providing Third-Party Payment Services, “third-party payment service providers” are required to register with the Min - istry of Digital Affairs for AML purposes, as well as complying with other obligations as required by these regulations. Under the newly amended Taiwan AML Act, the Regulations Governing the Anti-Money Laun - dering Registration for VASPs (the “Crypto AML Registration Regulations” ), and the Regulations Governing Anti-Money Laundering and Coun - tering the Financing of Terrorism for Enterprises Providing Virtual Asset Services, VASPs must
register with the FSC for AML purposes based on the types of services they render. Given that criminal liability applies for failing to complete the AML registration as outlined above, industry players are generally expected to incur higher compliance costs and efforts as a result of both regulatory moves mentioned above. Cryptocurrency STOs Since the introduction of the regulations gov - erning security token offerings (STOs) in 2020, there had been no STO programmes issued under these regulations until the announcement of the first STO programme in 2023. Relevant news reports indicate that the STO in question is a bond-type offering. It is therefore worth monitoring whether any other STO programmes will be launched in the near future. It is gener - ally considered that the limited number of STO programmes can be attributed to various fac - tors, including limitations such as the maximum issuance amount allowed for a single STO pro - gramme (TWD30 million), the maximum investor amount for individual investors (TWD300,000 for natural person professional investors), and the costs associated with launching an STO, such The FSC is exploring the introduction of a spe - cific law to enhance the regulation of VASPs, with a draft expected to be released by June 2025. According to news reports, the new leg - islation may lead to a transition from the current “registration” system under the AML framework to “licensing” model, requiring VASPs to obtain a licence from the FSC before offering virtual asset services. Key areas of focus for the new law are expected to include minimum capital as intermediary fees. Specific crypto law?
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