XREX: Far Eastern International Bank ceases USD inflow and outflow cooperation in adherence to Financial Supervisory Commission’s directive, strengthening anti-money laundering measures.
Due to the directive issued by the Financial Supervisory Commission (FSC) in Taiwan, aimed at strengthening the business relationship and transaction monitoring between banks and virtual currency platforms, Far Eastern Bank has made adjustments to its business with XREX.
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FSC’s new regulations promote a sound trading environment
Far Eastern Bank adjusts services in response to FSC guidance
Implications for future business?
Taiwan’s cryptocurrency industry faces frequent regulatory actions
On January 10, 113 years since its establishment, 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 anti-money laundering control in banks and ensure transparency and legality in transactions. These new regulations require banks and virtual currency platforms to comply with the “Self-Regulatory Code for Establishing Business Relationships and Transaction Monitoring between Banks and Virtual Currency Platforms and Trading Businesses.”
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In a recent announcement, XREX stated that in order to comply with the FSC’s guidelines and the self-regulatory code of the Bankers’ Association, Far Eastern Bank will temporarily suspend the USD deposit and withdrawal services for XREX’s “Taiwanese nationals and natural persons” starting from January 30. This adjustment will affect the trading methods of some users, but XREX has stated that it will continue to provide other stable and reliable trading options.
XREX stated that this adjustment mainly affects Taiwanese users who conduct USD transactions through Far Eastern Bank. XREX recommends that these users switch to Customers Bank in the United States for their transactions to ensure smooth transactions. TWD transactions will not be affected and will continue to operate as usual. XREX also stated that once Far Eastern Bank provides the corresponding USD trust services that comply with the relevant regulations, they will consider resuming cooperation with the bank.
Although this adjustment by XREX may inconvenience some users, it reflects the direction of the entire Taiwanese financial industry towards greater transparency and compliance. The cryptocurrency industry, which was previously in a gray area in terms of finance, has seen several law enforcement actions in recent years:
Is the first case of money laundering transformation for an exchange? BITGIN to remove individual accounts and transform into corporate accounts
ACE, the flagship exchange, involved in money laundering scandal: FSC takes action, highest penalty of millions
JPEX case: Chen Lingjiu listed as a defendant in the investigation, Tony Zhang Dongying released on bail with a bond of 1.5 million and travel restrictions
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In response to these phenomena, the VASP Association Preparatory Committee has also declared its commitment to establishing standards after its establishment.
XREX
Deposit and withdrawal
USD
Further reading
XREX launches new TWD trading service! Providing Taiwanese users with a smoother and more diverse trading experience
Binance accelerates KYC progress for all users, trading not allowed without intermediate verification completion
