With a global regulatory framework for cryptocurrencies not likely to happen soon, different world jurisdictions have in recent months started to create rules for the emerging industry.
The latest of those efforts took place in Taiwan where local news source Focus Taiwan, reported that a revision had been made to existing financial laws in a bid to accommodate cryptocurrencies.
The country's Financial Supervisory Commission has also been granted the power to oversee the industry, beginning with a crackdown on anonymous cryptocurrency transactions by the Taiwan populace.
Inside Taiwan's New Regulations Against Anonymous Crypto Transactions
To protect investors and provide more certainty to the crypto space, the Taiwanese legislature made some changes to the existing Money Laundering Control Act and the Terrorism Financing Prevention Act.
For citizens to trade cryptocurrencies on native exchanges and foreign exchanges, the amended law requires that they open accounts with their real names which will ,in turn, be connected to local bank accounts.
Such a measure will allow individuals to be protected under the same laws that govern bank transactions. A line in the publication reads,
“The FSC can now demand that operators of virtual currency platforms, including bitcoin, implement ‘real-name systems’ that require users to register their real names, according to the new provisions.”
In a simpler sense, this means that users will no longer be able to exchange cryptocurrencies if their identity is not known by the exchange operators.
Users who already own accounts with exchanges are required to comply with the new regulatory instruction by completing identity checks on the platform where they have signed up in the past.
Popular Taiwanese exchanges such as Bitoex and Bitopro are among the exchanges which have already heeded the regulatory command by setting up a real-name system in line with Know-Your-Customer (KYC) requirements.