XREX: Ceasing Far Eastern Bank’s USD Deposit and Withdrawal Services to Strengthen Anti-Money Laundering Measures in Compliance with FSC Directives
Due to the instructions issued by the Financial Supervisory Commission (FSC) of Taiwan, aimed at strengthening the business relationship and transaction monitoring between banks and virtual currency platforms, XREX has made adjustments.
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New FSC regulations promote a healthy trading environment
XREX adjusts services in response to FSC guidelines
Impact and future business?
Taiwan’s cryptocurrency industry faces frequent regulation
On January 10, 2023, the FSC issued a directive to regulate the business cooperation and transaction monitoring between banks and virtual currency platforms. The main purpose of this move is to strengthen the anti-money laundering control of banks and ensure transparency and legality in the transaction process. These new regulations require banks and virtual currency platforms to comply with the “Self-discipline Regulations for Establishing Business Relationships and Transaction Monitoring between Banks and Virtual Currency Platforms and Transaction Businesses.”
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Taiwan’s FSC officially announces VASP guidelines, “individual currency traders” and “overseas currency traders” to be regulated
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XREX announced today that, in order to comply with the FSC’s guidelines and the self-discipline regulations of the Banking Association, the virtual currency platform XREX has decided to suspend its US dollar deposit and withdrawal services for “Taiwanese nationals and individuals” from January 30. This adjustment will affect the trading methods of some users, but XREX stated that it will continue to provide other stable and reliable trading options.
XREX stated that this adjustment mainly affects Taiwanese users who conduct US dollar transactions through Far Eastern International Bank. XREX suggests that these users switch to Customers Bank in the United States for their transactions to ensure smooth trading. TWD transactions are not affected and will continue to operate normally. XREX also stated that once Far Eastern International Bank provides corresponding US dollar trust services that comply with relevant regulations, they will consider resuming cooperation with the bank.
Although this adjustment by XREX may cause inconvenience to some users, it reflects the direction of the entire Taiwanese financial industry towards greater transparency and compliance. For the cryptocurrency industry that used to operate in a grey area, there have been several law enforcement actions in recent years:
Is it the first case of a cryptocurrency exchange transforming after being involved in money laundering? BITGIN unexpectedly cancels individual accounts and transforms into a business account
ACE, the ace cryptocurrency exchange, involved in money laundering scandal: FSC takes action, imposes a maximum fine of ten million
JPEX case: Anthony Neely listed as a defendant in the investigation, Tony Chang posts bail of 1.5 million and is restricted from leaving the country
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Assisting in promoting media
Still not under investigation)
Regarding these phenomena, the VASP Association preparatory team has also declared its commitment to establishing standards after its establishment.
XREX
Deposit and withdrawal
US dollars
Further reading:
XREX receives provisional approval for Singapore payment institution license, will expand support for different currencies
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