Sources have reported that Binance, the world’s largest cryptocurrency exchange, has applied to operate in Taiwan under the Anti-Money Laundering Law, which is the only regulation related to cryptocurrencies introduced by the authorities in Taiwan. This step is considered as one of the components of Binance’s expansion plan in Asia.
Two sources close to the matter have reported that Binance, the world’s largest cryptocurrency exchange, has applied to operate in Taiwan in accordance with local anti-money laundering rules. The application made by Binance to operate under the Anti-Money Laundering Law, which is the only regulation for cryptocurrencies introduced by the authorities in the country, is currently awaiting approval.
Sources have stated that Binance has applied to the Financial Supervisory Commission (FSC) on compliance with anti-money laundering measures during a closed-door meeting held on August 8, attended by dozens of local crypto service providers. Since the implementation of the anti-money laundering rules by the FSC in July 2021, Taiwan has made it mandatory for virtual asset service providers (VASPs) to comply with anti-money laundering laws. However, the cryptocurrency sector in the country is still largely unregulated.
An FSC official, speaking to The Block, declined to comment on whether Binance has submitted the necessary documents to register with the regulator but invited offshore cryptocurrency exchanges operating in Taiwan to comply with local anti-money laundering rules. Although Binance operates as a local company named “Binance International Limited Taiwan Branch (Seychelles)” according to the database of the Ministry of Economic Affairs in Taiwan, it is still an unregulated cryptocurrency exchange in Taiwan. The registration information shows that the government approved Binance’s company registration in Taiwan on May 12, 2023, with a registered capital of 30 million Taiwanese dollars (944,000 dollars).
Binance is currently collaborating with local law enforcement agencies in Taiwan to combat cybercrime. The cryptocurrency exchange announced in June that it had partnered with Taiwan’s Bureau of Investigation to share its expertise in combating crimes related to digital assets with over 200 Taiwanese law enforcement officers. Damien Ho, Binance’s Head of Global Partnerships, stated in a blog post published in June, “As the number of people interested in cryptocurrencies increases in Taiwan, the importance of users feeling safe and comfortable in the industry is growing.”
Binance is actively expanding in Asia. After acquiring the local cryptocurrency exchange Sakura Exchange in November 2022, the cryptocurrency exchange officially launched in Japan and obtained regulation from the Financial Services Agency of Japan.