Financial Supervisory Commission Promotes Virtual Asset 'Travel Rule': Transfers Over NT$30,000 Must Include Date of Birth and Address Starting October

To align with international anti-money laundering regulations, the Financial Supervisory Commission (FSC) announced today (4th) that it will implement the virtual asset "Travel Rule" in phases. In the future, when transferring virtual assets such as Bitcoin through domestic Virtual Asset Service Providers (VASPs), if the single transaction amount exceeds NT$30,000, individuals will be required to provide their date of birth and address. The receiving party must also verify this information to enhance transaction transparency and traceability.

The FSC stated that the first phase is expected to apply to virtual asset transfers between domestic VASPs starting in October 2026. The second phase will extend to cross-border transfers between domestic and foreign VASPs, anticipated to be implemented by the end of 2027.

Aligning with FATF Standards, Taiwan Officially Promotes the Travel Rule

The FSC pointed out that virtual assets have characteristics of anonymity and cross-border circulation, which can easily become tools for money laundering or terrorist financing if there is a lack of information disclosure mechanisms. Therefore, the Financial Action Task Force (FATF) has long required countries to establish a Travel Rule mechanism, mandating that virtual asset service providers transmit information about both parties during transfers.

Although Taiwan included relevant Travel Rule regulations in the "Anti-Money Laundering and Counter-Terrorism Financing Regulations for Virtual Asset Service Providers" as early as 2021, the formal implementation has been delayed due to differences in regulations among countries, inconsistent information transmission standards, and difficulties in cross-border system integration.

The FSC indicated that since the announcement of the VASP list that completed anti-money laundering registration last year, it has continued discussions with the Virtual Currency Business Association of the Republic of China to develop practical measures. After multiple discussions, it was decided to promote the implementation in phases.

Transfers Over NT$30,000 Require Date of Birth and Address; Corporations Also Have Additional Disclosure Obligations

To comply with international standards, the FSC has referenced the amended 16th recommendation and its annotations from the FATF, and is preparing to amend the law, which will be announced soon. The main points include two significant changes:

The most significant change in this amendment is the establishment of a "strengthened upper limit" information collection mechanism. According to the plan, regardless of the transfer amount, VASPs must implement the Travel Rule, collecting and transmitting the basic identity information of both parties involved in the transaction.

If the single transfer amount exceeds NT$30,000, additional information must be obtained:

• Individuals: Must provide their date of birth and address.
• Corporations: Must provide their official identification number and registered address.

The FSC stated that this measure will help enhance transaction traceability and comply with international anti-money laundering supervisory requirements.

Receiving Platforms Also Have Responsibilities to Verify Customer Identity

In addition to the transferring party providing information, the amendment also adds verification obligations for receiving platforms. In the future, when a VASP acts as the recipient of virtual assets and the transaction amount exceeds NT$30,000, it must compare the recipient information provided by the transferring party with the existing customer data on the platform to ensure the accuracy of the information and strengthen risk management.

Implementation in Two Phases, Cross-Border Transfers Expected by End of 2027

Considering that the integration of domestic and foreign VASP systems and practical adjustments will take time, the FSC has decided to promote the implementation in phases.

The first phase will be implemented in October 2026, applicable to virtual asset transfers between domestic VASPs; the second phase is expected to be launched by the end of 2027, applicable to cross-border transfers between domestic and foreign VASPs.

The FSC stated that the draft amendment will soon be published in the Executive Yuan Gazette and on the FSC's website for public announcement, allowing stakeholders to submit opinions within 30 days of the announcement as a reference for formal legislative amendments.

In response, the Virtual Currency Business Association of the Republic of China (VASP Association) expressed that it will continue to serve as a communication bridge between the regulatory authorities and the industry, highly affirming the regulatory authority's plan to implement the Travel Rule in phases.

The VASP Association is currently actively assisting its members in the technical integration and process optimization for the first phase of the "domestic VASP transfers" under the Travel Rule, ensuring that all platforms can go live smoothly according to the regulatory authority's timeline, while also preparing for the second phase of extending to "transfers between domestic and foreign VASPs."

The VASP Association emphasized that as major financial markets such as Singapore, Japan, and the European Union gradually implement the Travel Rule, Taiwan's phased introduction of this regulation will not only facilitate alignment with the global compliance ecosystem but also significantly enhance the international reputation and competitiveness of domestic VASP operators.

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