Taiwan Cracks Down on Crypto Transfers with Customer Data Sharing Mandate

Taiwan's financial regulator is tightening its grip on cryptocurrency platforms by requiring them to share customer information for domestic transfers between licensed virtual asset service providers (VASPs). The Travel Rule standards developed by the Financial Action Task Force (FATF) will apply to all domestic transfers, regardless of transaction size. For transactions exceeding 30,000 New Taiwan dollars ($930), platforms must also share additional sender information, including date of birth and residential address for individuals, or company registration number and registered address for legal entities.

The regulator plans to extend the Travel Rule requirements to transfers between Taiwanese and overseas VASPs by the end of 2027. This move is part of Taiwan's efforts to comply with FATF regulations and build a comprehensive legal framework for the digital asset sector. The country has already incorporated the Travel Rule into its anti-money laundering framework, but faced challenges in implementing it due to differences in national regulations and technical hurdles.

The stricter requirements come as other jurisdictions continue debating cryptocurrency regulation. In contrast, Taiwan is pushing forward with its regulatory efforts, including the introduction of a Virtual Asset Service Act that would establish a unified regulatory framework for VASPs, stablecoin issuers, and investor protection.