In Response to Regulatory Changes OKX Exchange Announces Suspension of C2C Trading Service in Taiwan

In Response to Regulatory Changes OKX Exchange Announces Suspension of C2C Trading Service in Taiwan

In Response to Regulatory Changes OKX Exchange Announces Suspension of C2C Trading Service in Taiwan

OKX Exchange announced this afternoon that it will suspend C2C trading services in Taiwan. The exchange stated in the announcement that the decision to halt C2C trading services is mainly related to changes in Taiwan’s regulatory requirements.

According to Zombit’s report, the Financial Supervisory Commission had previously announced that virtual assets would be brought under regulation in four phases, with the current focus on anti-money laundering issues. Therefore, both domestic and foreign currency traders involved in Taiwan dollar and cryptocurrency transactions will be the main targets for regulation. Under the latest “Anti-Fraud Four Laws” proposed by the Executive Yuan, the revised regulations in the Anti-Money Laundering Act will bring virtual asset services, third-party payment services, and overseas-based virtual asset and third-party payment service providers under regulation.

Virtual asset services must complete anti-money laundering registration.
Third-party payment services must complete anti-money laundering and service energy registration.
Overseas-based virtual asset and third-party payment service providers must establish a branch office registration or branch office registration.
Failure to complete the above three requirements while still providing services may result in a sentence of up to 2 years in prison.

In comparison to OKX, Binance Exchange’s C2C trading function is currently still available for use by Taiwan users, and multiple individual currency traders are still providing services on the platform. However, it can be expected that Binance Exchange will also need to make corresponding changes in this aspect after the completion of the revision of the Anti-Money Laundering Act. Whether it is establishing a presence in Taiwan or cooperating with local compliant currency traders, these are potential solutions.