| dc.description.abstract | In 2008, blockchain technology emerged, followed by virtual currencies. Today, virtual currencies have been developing for many years, whether for payment or investment purposes, greatly impacting the original social and legal systems. Consequently, countries worldwide have begun to pay attention to this emerging asset and attempt to regulate it. Virtual currencies, characterized by anonymous, decentralization, and cross-border transactions, are difficult to trace and prone to misuse in money laundering activities, necessitating stronger regulation in anti-money laundering efforts. Currently, most virtual currency transactions or activities are conducted through VASPs, and regulating centralized VASPs is relatively easier. Therefore, whether in our country or others, most efforts are directed towards regulating VASPs for anti-money laundering.
Before regulating VASPs for AML, it′s essential to understand the basic concept of money laundering. Observing the relevant developments in our country′s anti-money laundering efforts, it can be seen that we have largely followed the FATF 40 Recommendations and achieved good results in the APG third round mutual evaluation. Our country has also made several amendments to Money Laundering Control Act, indicating that our AML system is gradually maturing.
Moreover, regarding the regulation of VASPs for anti-money laundering, our country included VASPs in the scope of the Money Laundering Control Act in 2018. In June 2021, “Regulations Governing Anti-Money Laundering and Countering the Financing of Terrorism for Enterprises Handling Virtual Currency Platform and Transaction” were issued, imposing certain anti-money laundering obligations on VASPs. Subsequently, “Guiding Directions for the Administration of Enterprises Handling Virtual Asset Platform and Transaction (VASPs)” were formulated. It can be seen that our country is sparing no effort in regulating VASPs. However, after comparing with international standards for regulating anti-money laundering efforts of VASPs, it is evident that our country still has many shortcomings, especially in the implementation of registration and “travel rule”. Therefore, this paper will explore the challenges faced by our country in regulating anti-money laundering efforts of VASPs and conduct an in-depth analysis of FATF Updated Guidance for a Risk-Based Approach to VAs and VASPs. This aims to propose areas for our country to learn from and provide relevant suggestions, thereby improving the anti-money laundering regulations for VASPs and fostering a healthy virtual asset industry ecosystem. | en_US |