Taiwan Central Bank Governor Proposes to Put Bitcoin Under AML Rules
April 2, The Central Bank of Taiwan has recommended to bring bitcoin trading under the department of justice’s anti-money laundering (AML) regulations, according to China Times. Central bank governor Yang Chin-long emphasized that, they have noted the “opacity” of bitcoin trading.
During a meeting with Taiwan’s Legislative Yuan Finance Committee yesterday, Yang was questioned over the falling price of bitcoin which drew the issue of lack of transparency in bitcoin trading.
In response to the enquiry, Yang said bitcoin price movements has been monitored and the central bank would take its responsibility to warn the public on the risk correlated with bitcoin investments as “the trading price (of bitcoin) could be easily manipulated”.
At the same time, Yang said the bank also proposes Taiwan’s Ministry of Justice to regulated bitcoin trading under existing AML rules as the anonymity features could be easily used as a tool for money laundering. Yang also added that, due to the issues of AML, anti-terror financing and investor protection, most counties have put bitcoin trading under their AML regulations.
Taiwan also ranks in the third of the lowest cost of mining in the world due to low electricity cost. A parliament member also asked Yang if the banking authority has payed attention to bitcoin mining in Taiwan.
Yang Chin-long pointed out that, most of Taiwan’s bitcoin mining equipment manufacturers set up their factories on the mainland China. Previously, China’s authorities had also restrict bitcoin mining. In addition, Yang also promised that the central bank would keep an eye on the bitcoin minging to determine whether it would have significant effects on power usage.
The central bank has identified bitcoin as an “internet investment product” previously. Yang was the vice president of the central bank at that time and he represented the bank to stated that the bank authority “dose not recognize bitcoin as a tool for transaction payments”, and he also emphasizes “the New Taiwan dollar (NT) is the only legal tender in Taiwan”.