FSC: Domestic VASP Transfers Over NT$30,000 Require Birth Date and Address, Effective October

The Financial Supervisory Commission (FSC) announced today (4th) that, to strengthen anti-money laundering (AML) and counter-terrorist financing (CFT) measures and align with international standards, it will propose amendments to relevant regulations. Starting October 2026, domestic Virtual Asset Service Providers (VASPs) must implement the 'Travel Rule' when transferring virtual assets. For any single transfer exceeding NT$30,000, the sending VASP must transmit not only basic transaction data but also the customer’s date of birth and address to enable the receiving party to verify identities and mitigate criminal risks. Cross-border transfers are scheduled to be implemented by the end of 2027.

Huang Chung-hao, Deputy Director of the Securities and Futures Bureau, pointed out that although the current eight VASPs in Taiwan that have completed AML declarations or compliance procedures already conduct various virtual asset transfers, they previously lacked a legal obligation to transmit and retain specific customer data. This revision primarily follows the Financial Action Task Force (FATF) recommendation of a USD 1,000 threshold (EUR 1,000 in Europe), which is approximately equivalent to NT$30,000.

Huang explained that Know-Your-Customer (KYC) verification at account opening and identity confirmation during transactions are entirely different concepts. Just as banks verify identity upon account opening, they must still confirm the sender’s identity and fund destination during subsequent wire transfers. Similarly, when virtual assets are transferred across institutions or borders, the receiving party must know the identity of the originating sender.

Regarding the new regulations, Huang stated that VASPs must implement the Travel Rule regardless of transfer value. However, for transfers exceeding NT$30,000, additional information must be collected based on whether the sender and recipient are individuals or legal entities. For individual senders, their date of birth and residential address must be obtained; for legal entities, their official identification number and registered address must be collected to enhance transaction traceability and AML supervision.

When a VASP acts as the recipient of a virtual asset transfer exceeding NT$30,000, it must cross-check the recipient information provided by the sender against its own customer records to ensure data accuracy and strengthen risk management.

However, the FSC will adopt a phased implementation approach. Starting October 2026, the rule will first apply to transfers between domestic VASPs. Cross-border transfers (including connections with overseas exchanges) will be delayed until the end of 2027, considering the varying legal frameworks and technical specification alignment challenges across countries.

In response to industry concerns about increased operational costs due to system integration and compliance burdens, the FSC stated that it has held extensive consultations with industry associations and operators. Domestic VASPs have already reached consensus on transmission specifications and system API interfaces, and technical issues have been resolved, ensuring smooth implementation.

Furthermore, the FSC emphasized that if operators fail to incorporate required checks into their internal control systems or fail to properly execute data transmission and verification, it will be deemed an internal control deficiency during financial inspections and may result in fines ranging from NT$500,000 to NT$10 million under the Anti-Money Laundering Act.