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.