By
Temitope Olatunji
May 15th, 2024
Binance is expanding its presence in Asia. The reports about its potential entrance into Taiwan come after the company re-entered the Japanese market last year.
Leading global cryptocurrency exchange Binance is seeking a regulatory license in Taiwan to enable the company to offer crypto services in the country. According to a recent report by The Block citing people familiar with the matter, the exchange has applied to be registered under the country’s anti-money laundering (AML) rules.
Taiwan is one of the many nations in the world with stringent AML laws. The country’s financial watchdog, the Financial Supervisory Commission (FSC), introduced the legislation in 2021, making it mandatory for all digital asset service providers to comply with the law.
Despite its close ties with China, the island nation has underlined its distinct crypto policies from those of mainland China, as the Beijing government has enforced a comprehensive ban on crypto-related activities since 2021.
Binance Seeks to Enter the Taiwanese Market
Binance is now seeking national regulatory approval as part of the company’s commitment to compliance with local regulatory authorities. If approved, the exchange can legally enter the Taiwanese Market and provide its business offerings to customers in the region.
Sources familiar with the matter revealed that Binance is actively engaged in registration, aiming to ensure rigorous compliance with AML regulations as stipulated by Taiwan’s financial authorities. According to local news media, the FSC disclosed the information during a confidential meeting with domestic crypto exchanges in Taiwan.
Binance Partners with Law Enforcement Agency in Taiwan
While Binance’s full regulatory status in Taiwan remains pending, the exchange currently operates in the country through a registered entity known as “Binance International Limited Taiwan Branch (Seychelles).” The Taiwanese government approved the firm in May 2023, with a registered capital of NT$30 million ($944,000).
In addition to its registration within the nation, Binance has joined forces with the Taiwanese authorities to combat cybercrime. The exchange announced the partnership in June, noting that it is working with the country’s Criminal Investigation Bureau (CIB) to share its expertise in tackling digital asset-related crime with more than 200 Taiwanese law enforcement officers.
Binance Faces Regulatory Hurdles in the US and Europe
Binance is expanding its presence in Asia. The reports about its potential entrance into Taiwan come after the company re-entered the Japanese market last year. The exchange acquired Sakura Exchange BitCoin in November 2022 to enable it to explore the Asian market.
Meanwhile, while Binance is expanding its reach in Asia, the exchange faces regulatory hurdles in the United States and Europe. The exchange is battling various legal cases in the US, including one with the Securities and Exchange Commission (SEC).
In Europe, the company has chosen to withdraw from several European jurisdictions, including the Netherlands, due to regulatory concerns.