Countries like Taiwan modify laws for the cryptocurrency trade in the anonymous sea.

Taiwan has amended laws that could implement a system for real-name identity verification in cryptocurrency trading. Currently, many Taiwanese trade cryptocurrencies anonymously on exchange platforms.

The country’s Financial Supervisory Commission (FSC) now has the power to crack down on anonymous crypto transactions.

According to Focus Taiwan, Taiwan’s national news agency, the revisions to the existing laws are aimed at regulating crypto transactions in the Asian country. Banks will also be required to report any crypto-related suspicious transactions.

The country said it would also strengthen anti-money laundering obligation on crypto exchanges. The lack of proper regulation has concerned lawmakers in the country. They fear that money launderers may be taking advantage of the relatively friendly laws.

The new rules, which may be implemented any time from now, will require users to register their real names, the article stated.

The new regulations will bring the country closer in line with international laws.

The decision comes after Jason Hsu, the man nicknamed the “crypto congressman” by Ethereum creator Vitalik Buterin, proposed similar regulations last month. According to him, the move could potentially support the growth of the blockchain technology and promote crypto businesses in the country. In other words, the new laws will help legitimize the industry in Taiwan.

“We should emulate Japan, where they treat cryptocurrency as a highly regulated, highly monitored industry like securities,” Hsu said last year

Taiwan is believed to be one of the biggest market trades in digital currencies, and its importance in the cryptocurrency space means that the amendments to the existing regulations could result in price swings.

Last year, the price of Bitcoin (BTC) fell by over 11% after South Korea announced it would ban anonymous trading on crypto coins and crack down on criminals using virtual currencies to launder money. Seoul also banned financial institutions from dealing in cryptocurrencies.