First Case Under AML Regulations
Taiwanese police arrested a 30-year-old man, surname Chen, in what is the first case under the nation’s newly enforced anti-money laundering (AML) regulations concerning virtual assets.
Chen, from the southern city of Kaohsiung, was charged with running an unregistered virtual currency dealer. Chen organized his cryptocurrency trade via Facebook Groups and in-person trades involving Tether, or USDT. This is prohibited by law. He allegedly had hundreds of deals in less than a month by selling 400,000 USDT each at a profit of NT$800,000.
On December 24, police arrested Chen. Computers, mobile phones, cash counters and safes have been seized.
Clampdown on Unregistered Coin Dealers
In a separate operation, law enforcement raided an unregistered “coin dealer studio” located on Chengdu Road in Taipei. The studio, which was overseered by clerks surnamed Lin and Liu, sold USDT at a 10% premium. This month alone, the dealers moved more than NT$200 million, with NT$20 million in profit.
Employees at the studio earned NT$40,000 a month.
Regulatory Framework and Enforcement
In accordance with the Money Laundering Prevention Act, Taiwan’s VASP registration system started on November 30, 2024, wherein all virtual currency providers must sign in. Currently, there are only 26 registered and thus are permitted to operate.
Penalties awaited those who did not adhere to the regulation: up to two years of imprisonment or a fine of NT$5 million. Meanwhile, the authority tightened online supervision, calling on people not to use the service of an unapproved organization and encouraging the public to report illegal activity.
Government’s Attitude toward Crypto Compliance
The Financial Supervisory Commission repeats its pledge for AML controls. Regulators warn of any engagement with unregistered operators, a threat to the regime of financial integrity and protection of consumers.
