Bitcoin regulated in Taiwan by Anti-Money Laundering Law

The Governor of the Central Bank of Taiwan has offered bitcoin should be regulated under anti-money laundering laws
03 April 2018   1564

Yang Chin-long has declared to the lawmakers that the financiers are observing cryptocurrency prices closely. According to his suggestment, cryptocurrency in the country is to be controlled under the current anti-money laundering legislation.

Taiwan's Central Bank, 中華民國中央銀行, is supposed to start regulation of  cryptocurrencies (such as bitcoin) by the country’s existing anti-money laundering (AML) laws. Governor Yang was replying to officials’ anxiety about bitcoin’s lack of transparency when traded.

As Focus Taiwan reported, Yang (who headed the central bank in February) made a suggestion for the Ministry of Justice to include Bitcoin into the competence of Taiwan’s Money Laundering Control Act due to the digital money’s lack of regulation.

Then Mr. Yang efforted to convince authorities that his agency was indeed monitoring bitcoin, going so far as to constitute investor guides or warnings about the decentralized currency’s possible risks.

These recommendations are connected with the statement made some weeks ago by the Finance Minister Sheu Yu-jer. He declared Taiwan should tax bitcoin while treating it as a consumer item. Mr. Sheu said the taxation problem had been carefully studied by his division.

Governor Yang affirmed having advised to the Ministry of Justice how all bitcoin trading can turn under AML. These remarks seem to be in line with regional efforts towards cryptocurrency: Malaysia this month has accepted know your customer (KYC) rules among exchanges, and South Korea has been trying to disrupt anonymous accounts through its banks using analogous laws. Mr Yang also added that "major central bankers and international financial organizations are against legalization of trading in virtual currencies like Bitcoin.”

Bitcoin markets are not difficult to manipulate because “87.5 percent of the Bitcoin transactions have been owned by only 0.61 percent of the trading accounts in the world,” he declared, informing investors to pay more attention to possible risks.

Bitwise to Withdraw Bitcoin ETF Application

The application was filled a year ago, company met with regulator 8 times and prepared more than 500 pages of documents
15 January 2020   126

Bitwise Asset Management, a digital asset management company, has withdrawn an application to launch a Bitcoin-linked exchange-traded fund (ETF).

On Tuesday, Bitwise sent a notice to the US Securities and Exchange Commission (SEC), where it announced that it had made such a decision "in the public interest and investor protection."

We did indeed withdraw the application. This is a procedural step, and we intend to refile our application at an appropriate time.


Matt Hougan

Global head of research at Bitwise

He also noted that his firm is currently “working hard” to answer the SEC questions in the 112-page commentary on the initial application.

We remain fully committed to the development of a bitcoin ETF.


Matt Hougan

Global head of research at Bitwise

Bitwise has applied for the launch of the Bitcoin ETF in January 2019. Since then, the company met with the regulator eight times and prepared 500 pages of documentation with arguments in favor of approving its proposal.