Binance, the world’s leading cryptocurrency exchange based on trading volume, is said to have submitted an application for registration in Taiwan in accordance with the Money Laundering Control Act and the Financial Supervisory Commission (FSC).
According to local reports, the FSC has informed numerous domestic crypto service providers that Binance is seeking compliance with Anti-Money Laundering (AML) regulations.
The source of this information is noted as Chen Peiyun, co-founder of BitShine, a cryptocurrency exchange based in Taiwan. The FSC has identified Binance as one of the potential exchanges planning to enter Taiwan’s crypto market. Binance has not provided a response to inquiries from Cointelegraph.
While Taiwan’s cryptocurrency sector is generally lacking in regulations, the FSC introduced AML guidelines in July 2021 that mandate all crypto exchanges operating within or offering services in the country to adhere to these regulations. Binance conducts its operations in Taiwan through a local entity known as Binance International Limited Taiwan Branch (Seychelles).
Registration records indicate that Binance’s local entity was formally registered on May 12, 2023. Beyond its registration activities, the cryptocurrency exchange has engaged in partnerships with the local government to combat cybercrime.
The FSC became the principal overseer of cryptocurrencies in Taiwan in March. During the announcement, the head of the regulatory body highlighted the intention to establish key regulations and policies.
These include measures such as segregating customer assets from company funds and implementing practices to safeguard investor interests. It’s important to note that Taiwan’s cryptocurrency policies are distinct from those of mainland China, which has enforced a comprehensive ban on crypto-related operations since 2021.
Reports concerning Binance’s entrance into the Taiwanese cryptocurrency market coincide with the exchange encountering regulatory examinations in both the United States and Europe. Binance is grappling with multiple legal actions in the U.S. and has opted to withdraw from several European jurisdictions due to regulatory challenges.