Binance, the world's prominent cryptocurrency exchange based on trading volume, has reportedly submitted an application for registration in Taiwan in compliance with the Money Laundering Control Act and the Financial Supervisory Commission (FSC).
As per a local media report, the FSC has informed numerous domestic crypto service providers that Binance is seeking anti-money laundering (AML) compliance approval. The report cited Chen Peiyun, co-founder of Taiwanese crypto exchange BitShine, who revealed that the FSC included Binance among the potential exchanges aiming to enter the Taiwanese crypto market.
While Taiwan's cryptocurrency industry mostly lacks regulation, the FSC introduced AML guidelines in July 2021 mandating all crypto exchanges operating or offering services in the country to adhere to these regulations. Binance operates in Taiwan through a local entity called Binance International Limited Taiwan Branch (Seychelles) . Registration records indicate that the local Binance entity was registered on May 12, 2023.
In addition to seeking registration, the crypto exchange is collaborating with the local government to combat cybercrime. In March, the FSC was designated as the primary regulator for cryptocurrencies in the nation. The regulator's head emphasized that the focus will be on formulating fund al rules and policies, including segregating client assets from company funds and implementing investor protection measures. Taiwan has underscored its intention to maintain an independent cryptocurrency policy separate from mainland China, which imposed a comprehensive ban on cryptocurrency-related activities in 2021.
Binance's potential entry into Taiwan's crypto market coins with its grappling with regulatory scrutiny in the United States and Europe. The company faces multiple legal actions in the US and has withdrawn from various European markets due to regulatory concerns.
